TM- ass 1.docx - MALAYSIA TREASURY BILL(T-BILLS 13 How does the instrument used in a bank treasury operation Malaysian Treasury Bills(MTB is short-term

TM- ass 1.docx - MALAYSIA TREASURY BILL(T-BILLS 13 How does...

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MALAYSIA TREASURY BILL (T-BILLS) 13) How does the instrument used in a bank treasury operation? Malaysian Treasury Bills (MTB) is short-term securities issued by the Government of Malaysia for the working capital. While MTB are mainly issued at a discount to their face- value, the Bank can also issue fixed-rate coupon bearing or floating rate. MTB are usually issued for a longer tenure, ranging from 3-months to 1 year. The frequent issuances and enlarged outstanding size of the MTB have helped to deepen the secondary market liquidity of the short-term bills market. 14) Are there any official guidelines regulating this instrument? The official guideline regulating MTB is Malaysian Debt Securities and Sukuk Market. These guideline refers to Loan (local) act 1959 authorises BNM and Treasury Bills (local) act 1946. 15) Who are the regulating agencies? The Securities Commission(SC) administers the Capital Markets and Services Act 2007 (CMSA), which governs a substantial part of the activities in the domestic corporate debt securities. On 1 July 2000, the SC became the single regulator for the Malaysian corporate debt securities, and moved towards a full disclosure-based regulatory regime with the issuance of the Guidelines on the Offering of Private Debt Securities. The SC issues guidelines on the issuance of corporate debt securities, supervises trading activities in the secondary market, and conducts joint examinations and inspections of investment banks together with Bank Negara Malaysia.
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  • Fall '19
  • Debt, Repurchase agreement, Bank Negara Malaysia

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