New 'Rentas' Adopts Global Standards, Connects With Swift

KUALA LUMPUR, Sept 20 (Bernama) -- A new Real-time Gross Settlement and Debt Securities Depository (RENTAS) System that was launched on Sept 19 has adopted global standards. In a statement, Bank Negara Malaysia's (BNM or Malaysia's Central Bank) wholly-owned subsidiary, MyClear, said the new RENTAS is also connected to the Society for Worldwide Interbank Financial Telecommunication's (SWIFT) worldwide messaging network. It said the launch of New RENTAS is the culmination of a multi-year effort to internationalise and modernise Malaysia's financial market infrastructures to support the settlement of wholesale payments and securities denominated in international currencies. "In line with the internationalisation objectives set out in BNM's Financial Sector Blueprint, New RENTAS has adopted global standards and is connected to SWIFT’s worldwide messaging network. "This initiative improves the accessibility and interconnectivity of Malaysia's financial markets," it said. With the launch of New RENTAS, Malaysian banks as well as offshore financial institutions will enjoy cost-effective, efficient and secure access to Malaysia's financial market infrastructures via SWIFT's international network. New RENTAS will offer comprehensive multi-currency settlement and debt securities depository capabilities with the Malaysian ringgit, US dollar and Renminbi (China's currency) as the initially supported currencies. RENTAS' Renminbi settlement facilities for both funds and securities support Malaysia's role as a recognised offshore Renminbi clearing centre. "With the successful modernisation of a key component of the nation's financial market infrastructures, banks and market participants will have a strong foundation that they can build upon to create a critical mass of market activities in Malaysia. "This allows the Malaysian financial system and Malaysian banks to play a larger role in facilitating international economic activity and intermediating international capital flows," it added. --BERNAMA