Broadridge partners with Maybank IB for Shariah-compliant securities lending on Malaysia bourse

Broadridge announced that Maybank Investment Bank Berhad are partnering to grow the bank’s securities borrowing and lending business. Tapping Broadridge’s Securities Finance and Collateral Management (SFCM) solution, Maybank IB’s newly launched SBL offering for institutional investors uses proprietary technology for a front-to-back platform that is fast, transparent and Shariah-compliant.

The platform’s ability to interface with downstream systems enables automation and straight-through processing (STP), resulting in enhanced client experience and better cost management. Its scalability also offers flexibility to expand into other regions seamlessly.

“We are thrilled to strengthen our partnership with Maybank Investment Bank and jointly deliver our securities lending and borrowing service offering, encompassing multi-custody principal and agency trading models,” said Darren Crowther, head of Securities Finance and Collateral Management at Broadridge, in a statement. “In today’s complex global markets, businesses require solutions that enable rapid startup, capture growth opportunities, integrate seamlessly with internal and external systems, meet regulatory obligations, and streamline operations. Broadridge’s SFCM solution empowers firms to navigate these challenges successfully.”

Tengku Ariff Azhar, chief operating officer at Maybank Investment Bank, said in a statement: “The combined expertise of Broadridge and Maybank IB resulted in a comprehensive end-to-end platform with trading capabilities, operational efficiency and connectivity. This partnership enabled us to swiftly bring this product to market while adhering to the regulatory framework provided by Bursa Malaysia. We target to be the first in Malaysia to offer Shariah-compliant SBL for retail investors next year.”

Maybank IB was onboarded as an approved supplier and user under Bursa Malaysia’s Islamic Securities Selling and Buying – Negotiated Transaction (ISSBNT) Framework in August 2022. This allows the bank to facilitate client-driven hedging and risk management activities that comply with Shariah principles.

Source

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