Ringgit Derivative Products In Offshore Market Against Malaysia's Policy - Malaysia's Central Bank

KUALA LUMPUR, Aug 10 (Bernama) -- The recent introduction of ringgit futures at the Singapore Stock Exchange (SGX) and the Intercontinental Exchange (ICE) or ICE Futures Singapore is inconsistent with Malaysia’s foreign exchange administration (FEA) policy and rules, said Malaysia's Central Bank (BNM). In a statement Monday, the central bank said the Malaysian ringgit is a non-internationalised currency and thus, offshore trading of the ringgit, in any form, whether as a non-deliverable forward traded out of offshore financial centres or as futures, options and other derivative contracts on exchanges outside of Malaysia, was against Malaysia’s policy. “We would like to remind all market participants to observe the existing FEA rules. Contravention of the FEA is an offence under the Financial Services Act 2013 and Islamic Financial Services Act 2013,” said BNM. It said appropriate action under the law would be taken against any person that did not comply with prevailing rules and regulations. Foreign participants should access the onshore ringgit foreign exchange market to meet their financial needs, either directly with onshore licensed financial institutions or their Appointed Overseas Office (AOO), BNM added. -- BERNAMA