Bursa Malaysia Introduces API Gateway To Improve CDS Account Management

Alex Cheong Pui Yin

24th May 2024 - 3 min read

Bursa Malaysia said that it has recently introduced a software intermediary that will improve the management process of the Central Depositary System (CDS) by participating organisations (POs) or brokers. This is in a bid to enhance the user experience for investors who trade on the local bourse, as well as to encourage investor participation in the equities market.

In a statement, Bursa Malaysia said that the introduction of the application programming interface (API) or API Gateway – essentially an interface that allows two or more computer programmes or components to communicate – is expected to bring various improvements. These include streamlining an investor’s onboarding journey, as well as shortening the turnaround time in CDS account opening or in updating and re-activating CDS accounts.

(Image: The Malaysian Reserve/Razak Ghazali)

To explain, all investors who wish to trade in securities listed on Bursa Malaysia must open a CDS account with authorised depository agents or POs. This is because the securities that you buy will be credited into this CDS account that was opened, and debited accordingly when you sell them.

“The gateway also enables POs to further digitalise their processes as part of business process improvement for customer experience and sustainability practices to reduce carbon footprint,” Bursa Malaysia further noted, adding that the API Gateway for CDS e-services is already operational, and that five POs have signed up for it to date.

The five POs include AmInvestment Bank Berhad, FSMOne (the online retail division of iFAST Capital Sdn Bhd), Hong Leong Investment Bank, Malacca Securities, and Moomoo Securities Malaysia. Other POs are also urged to adopt these enhancements and offer them to their customers; they can visit Bursa Malaysia’s API Services page to find out more or start the process.

datuk muhamad umar swift bursa malaysia — (Image: The Malaysian Reserve/Arif Kartono)

“The Exchange actively listens to the evolving needs of our customers. This initiative is key in delivering on our commitment towards greater customer-centricity. We will continue to work closely with our POs and introduce service innovations to attract more investors, bolstering the competitiveness of our market,” said the chief executive officer of Bursa Malaysia, Datuk Muhamad Umar Swift.

The introduction of the API Gateway is also set to complement the existing BURSA Remisier Acquisition Hub (BURSA REACH), described as Malaysia’s first profiling platform that is dedicated to featuring and connecting dealer representatives with investors. Ultimately, it is hoped that these initiatives will provide Malaysian investors with easier access to investment opportunities in the marketplace and foster a vibrant capital market.

(Source: Bursa Malaysia)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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