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Operational Procedures for Malaysian Ringgit Settlement

1. ccccceceeeeeeeeeeeeeeeeeeeeeeeseeeeseaeeseeeeeeeee 46 19 0 Managing Unpaid Credit Facilities ccc cccceccceeeeeeeeeeeeeeeeeeee scenes eeaeeeeaaeseeeeeseeeesaeeeeeeeeeeee 47 20 0 6 PK REQUIFEMOMIS elier oeeie k En Eea EAE EO CRE KEAN AEREA aE AAE ES EAE EE 50 21 0 RENTAS iLINK User Identification ID Registration ccceecceeceeeeeeeeeeeeeeteeeeeeaeeeeeeeeeneees 51 22 0 Digita Cerf A EE aa e r hatte ives deat a a E a a ide aan ekieiedeats peter aaiae 52 23 0 Authenticity Confidentiality and Irrevocability of the RENTAS MYR Settlement Messages 53 24 0 Minimum Transaction AMOUNT eisen cc cee cence ee enne ee ee EaR AEn ee ee EEE EASE EAEN taaeeeeetaaeeeeeeaaeeeeeeaeeeeees 54 25 07 Bilin P E EE tsp vestince eeks oo eth fare A E EEEE EE EEE AEA E tet 55 26 0 Online Host ENGU ecaro ea a A aat a a E aa EE a A eaa AEA te AET AEIR Aa MAEA 56 27 0 Business Continuity Management BCM ccccccceeeeeseeeeeeee cee eeeeaeeeeaeeseeeeeseaeeetaeseeeeseeeeee 57 28 0 BCM Arrangements in Relation to RENTAS Fallure ceccceeeecceeseeeeeeeeeeeeeeteeeeecaeeeeeeeeeeee 59 29 0 RENTAS CHS Failure at Live Site eccececeeceeeeeeeeeeeeeeeeeeeee eae eeeaaeeeeaee scenes seaeeesaeeseeeseeeee 60 30 0 RENTAS CHS Failure at Both Live Site and Recovery Centre RO 61 810 6 PRKU Rallye ccs evecchiceee Stee A A AR ETRA OSEAS AR AEDE EAA A ite daaettenbia nade eeaeetaaek ates 63 32 0 Network Connectivity Failure cccceeeeeeeeeee
2. 30 8 Participants may only initiate transactions for same day value in Mini RENTAS 30 9 If Participants had previously transmitted future dated transactions into RENTAS CHS prior to the failure of RENTAS CHS such future dated transactions would not be transferred to mini RENTAS Hence Participants would have to re initiate these transactions in Mini RENTAS on the value date of the transactions 30 10 For e Debit MEPS Cash Shared ATM clearing Interbank GIRO and Financial Processing Exchange clearing Mini RENTAS would automatically generate a credit transfer for Participants who are short in the respective clearing position This auto construction of the credit transfer eliminates the need for Participants to manually construct a credit transfer to cover their clearing obligation The affected Participants would have to verify and approve the credit transfer for the clearing house settlement to take place 30 11 MyClear shall provide six 6 user IDs 4 Supervisor IDs and 2 Operator IDs with the individual unique password to each RENTAS Participant Participants shall ensure that these user IDs are safely kept for use in the event of Mini RENTAS activation 30 12 To revert to normalcy MyClear would deactivate Mini RENTAS and perform end day batch processing Upon completion MyClear would transfer Participants latest Settlement Account balances and Securities Account balances to RENTAS CHS Participants shall verify their Settle
3. 6 1 2 There are six 6 types of RENTAS membership as illustrated in the table below Type 1 Type Il Type Ill Type IV Type V Type VI Type of eLicensed eDevelopment ICSDs and Foreign Qualified Clearing Institution Fls Financial CSDs central banks foreign houses regulated Institutions entities and or co multi lateral Qualified regulated si institutions Sones admitted for elnstitutions market under development BNM s purposes purview For MYR Access to Access to Access to Access to Access to Access to a Settlement both both Securities Securities Securities Settlement Services Settlement Settlement Accounts Accounts Accounts and and and only for own for own Securities Securities Securities holdings holdings Accounts for Accounts Accounts only only own holdings only b Intraday Yes No No No No No credit facility c Direct Yes Yes Yes Yes Yes Yes Participation Malaysian Electronic Clearing Page 22 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE Document Ref No 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2
4. 60 minutes of an MC failure Malaysian Electronic Clearing Page 59 of 101 Corporation Sdn Bhd 2015 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 29 0 RENTAS CHS Failure at Live Site 29 1 To minimize the risk of disruption to the settlement operations of Participants RENTAS CHS runs on fault tolerant technology which allows the system to continue functioning uninterrupted when individual system components fail In addition MyClear maintains a RENTAS system at BNM s Recovery Centre that is updated in real time so that all data and transactions are identical to the live RENTAS system 29 2 In the unlikely event of RENTAS CHS failure MyClear shall make use of e mail or SMS or BCP call tree to keep Participants updated on the recovery status and action plan every thirty 30 minutes until the RENTAS CHS resumes normal operation 29 3 If MyClear decides to move its RENTAS CHS operations to its Recovery Centre the activation of the RENTAS system at the Recovery Centre can be completed within two 2 hours M
5. Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 11 7 All rights title and interest in and to any of the Identified Securities shall vest in BNM free and clear of any liens claims charges or encumbrances or any other interest of the Participants or of any third party 11 8 Though the Identified Securities may be represented in their K account BNM has complete and full ownership control and possession of the Identified Securities 11 9 Nothing in this clause is intended to create or does create in favour of either party any mortgage charge lien pledge encumbrance or other security interest in the Identified Securities 11 10 BNM retains the absolute right to remove the Identified Securities from the Participants K account at any given time 11 11 Provided that the Participant discharges its obligation under the MYR Intraday credit facility within the stipulated time BNM has the obligation to return only securities equivalent to the Identified Securities of the same type nominal value description a
6. SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 4 0 Overview Participant Terminals _ TA RENTAR RENTAS RENTAS Ress ie MC iLINK a old ateway Clearing Houses _and Networks q New RENTAS Access Channels MyClear Scripless Securities Interbank Funds Depository and Transfer System Settlement System MYR SAS MCT SAS MYR Settlement Foreign Currency Account System Settlement Account System MYR Settlement Institution Foreign Currency Onshore BNM Settlement Institutions Settlement Institutions 4 1 Using RENTAS Participants may initiate payment and securities transactions Ringgit transactions are initiated via the RENTAS member computer MC while foreign currency transactions are initiated via RENTAS Bank Gateway SWIFT Access and RENTAS iLINK These Participant Terminals transmit the transactions to the RENTAS Central Host System RENTAS CHS where the transactions are processed by simultaneously debiting the paying Participant and crediting the receiving Participants MYR Settlement Accounts maintained with Bank Negara Malaysia BNM or the Participant s Foreign Currency Settlement Accounts maintained with designated Onshore Settlement Institutions OSI Upon completion of funds transfer transactions RENTAS CHS will update the transaction status as completed in RENTAS iLINK 4 2 The RENTAS CHS will process all transactions on an
7. facilitate multiple Interbank GIRO Settlements Clause 9 2 e Added new settlement time for each Interbank GIRO clearing window e Established a MYR Evening Settlement Window to facilitate settlement of Interbank GIRO clearing position after 6 00pm e introduced new time for auto deposit acceptance facility and repayment Clause 9 11 New clause to provide clarity that the MYR Evening Settlement Window is open for Interbank GIRO settlement only Clause 11 0 To rename existing clause to reflect the expanded scope of this section with the inclusion of ACOFF MYR Intraday Credit and Automatic Collateralized Overnight Funding Facilities Clause 11 1 New sub clause specifying the types of credit facilities in RENTAS MYR Intraday and Auto Collateralized Overnight Funding Facility Clause 11 2 Provide clarity that Intraday credit is only offered between 8 00am 6 00pm MyClear Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 8 of 101 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1
8. in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix V Form A New Participant Please use institution s letterhead To Managing Director Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 12 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC Subject Confirmation of Participation We refer to the application on the above 1 We confirm our participation in the RENTAS system for indicate all that are applicable MYR Payments Services only MYR Settlement Services both payments and securities Foreign Currency Payment Services only specify currencies Foreign Currency Settlement Services both payments and securities specify currencies Securities Services only We appoint the following institution as the authorised agent to manage and operate our daily operation for both securities transactions and the corresponding payment transactions in the RENTAS system Name of Agent Currency Cross Border Securities Custody Services 2 As the owner of the stipulated account s in RENTAS we hereby agree to abide by all rules operational procedures and guidelines issued by Bank Negara Malaysi
9. 0 Purpose 2 1 These Operational Procedures are intended to equip Participants with an operating knowledge of MYR Settlement in RENTAS and serve as a basis for Participants to develop comprehensive internal procedures 2 2 These Operational Procedures take effect from 20 May 2015 Malaysian Electronic Clearing Page 15 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 3 0 Definition of RENTAS 3 1 RENTAS is a multi currency real time gross settlement system for inter bank funds transfer a securities settlement system and a scripless securities depository for all unlisted debt instruments Malaysian Electronic Clearing Page 16 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR
10. 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 12 0 STP Requirements for Efficiency Purposes 12 1 Participants shall adhere to the message content standards specified in Guideline on MYR Third Party Payments when constructing the messages for transmission to counter parties Malaysian Electronic Clearing Page 37 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 13 0 Queue Management 13 1 If Participants do not have sufficient funds or sufficient securities their transactions will be queued centrally at RENTAS CHS on a First in First out FIFO basis 13 2 There are two 2 types of payment queues namely the normal queue and priority queue During the RENTAS MYR Settlement Cut off all unsettled instructions in both the normal and priority queues will be cancelled by RENTAS CHS Participants will be notified accordingly via online reports 13 3 Normal Queue Management 13 3 1 Through MC Participants may manage their MYR IFTS payment normal queue by i Re ordering their
11. 1 Type 1 Type Il Type Ill Type IV Type V Type VI For Foreign Access to Access to Access to Access to Access to Access to Currencies both both Securities Securities Securities Settlement a Settlement Settlement Settlement Account Account for Account Accounts Services and and own only only Securities Securities holdings Accounts Accounts only b Intraday At the discretion of OSI where the Participants maintain their foreign currency account Credit Facility c Direct Yes Yes Yes Yes Yes Yes Participation 6 1 3 Potential participants seeking admission to RENTAS shall fulfil the following requirements i Demonstrate financial soundness ii Have sufficient liquidity position or credit lines to cover the participants maximum expected settlement obligation in RENTAS iii Have sufficient expertise and resources to operate RENTAS iv Possess sufficient risk management and business continuity planning framework and policies 6 1 4 Foreign entities with access to only securities accounts in RENTAS shall open a MYR cash account with a Malaysian bank for MYR cash settlement purposes and shall ensure sufficient liquidity at their participating banks either by maintaining sufficient balances or by obtaining access to credit lines 6 1 5 Documents that have to be submitted for the participation application shall include i The latest three 3 years audited financial statements ii Certificate of incorporation
12. 2 2 6 of this Guideline the paying Participants shall indemnify the receiving Participants according to the terms set forth in this section The paying Participants shall include in its request in the CRN the following notation We indemnify you pursuant to paragraph 3 of the Guidelines on Compensation on Inter bank Failed Settlements for returning payment rectifying payment withholding paymen instructions Delete whichever is not applicable 3 2 The paying Participants shall indemnify the receiving Participants its employees and agents against any and all claims liabilities losses expenses including all legal fees and disbursements suits or damages resulting from the return rectification withholding or refund of payments by the receiving Participants pursuant to the request of the paying Participants 3 3 The paying Participants shall return on demand by the receiving Participants all payment amounts returned or refunded by the receiving Participants pursuant to the request of the paying Participants The paying Participants shall further indemnify the receiving Participants its employees and agents against and all claims liabilities losses expenses including all legal fees and disbursements suits or damages arising from the breach of this undertaking 3 4 This Indemnity shall apply and be enforceable even if the receiving Participants effect a Settlement or compromise with regard to any claim for losse
13. 41 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 15 0 Request for Extension of PvP Link Cut off Time 15 1 Participants are required to observe the PvP Link Cut off scheduled at all times to ensure industry wide operational efficiency 15 2 MyClear may in exceptional circumstances consider extending the PvP Link Cut off time when the extension of time is necessary to avoid settlement failures that pose a systemic risk to the system Any extension of time has to be mutually agreed upon by both MyClear and HKMA 15 3 Requests for extension shall be made to Payment Services officers of MyClear as listed in Appendix 1 by telephone at least forty five 45 minutes before the scheduled PvP Link Cut off time MyClear may reject any request made less than forty five 45 minutes before the PvP Link Cut off time In such circumstances MyClear shall not be held responsible for any losses incurred by the Participants 15 4 Participants shall fax the duly completed form as specified in Appendix II a fo
14. 80 1 0000141 At MyClear s Premises Prepare BCP Working Environment Task Task Description Where By Whom Status 1 Member Activation on BCP Server BCP Server MyClear e Requires two 2 authorised users from MyClear s IT Service Provider e Activate RENTAS member for selected FI Please refer to RENTAS BCP User Manual 2 Create Member Profile on BCP Workstation BCP MyClear e Requires only one 1 authorised user from Workstation RENTAS MC IT Service Provider e Create member profile for the selected FI Please refer to RENTAS BCP User Manual Repeat the above steps for other workstations to be used for BCP 3 Replace Certificate Files and ePKI Profile File on BCP Server amp RENTAS MC BCP Server and BCP Workstations BCP phic e Rename D RentasPKI profile_bcp ini as Workstation D RentasPKI profile_bcb_0101 ini e Rename D RentasPKl certs as D RentasPKI certs_0101 e Place Certificate Files brought by FI into D RentasPkKl certs e Place ePKI Profile File brought by FI into D RentasPKI and named it as profile_bcp ini e Open D RentasPK profile_bcp ini with text editor and amend the following At General Section home dir D RentasPKl epkiout certrepo url num 1 certrepo url 1 http 0 104 0 119 8084 certrepos certrepos Malaysian Electronic Clearing Page 96 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn
15. Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Task Task Description Where By Whom Status chs backup settle2048 bnm gov my For each of the Profile public store file for each of the profile shall refer to its correspondent Certificate File located at D RentasPKi certs i e public store file D RentasPKI certs XxXx cer Repeat the above steps for other workstations to be used for BCP Verify all EPKI components are up to date in BCP Server and Workstations gt BCP Server and Workstations D RentasPKI e CryptoSrv exe e CryptoSrv_TMLOG exe e CDMProxy exe e CDMProxy_TMLOG exe e CDM exe e CDM_TMLOG exe e SCEDII dll BCP Server gt D MCServer Common e FECAPI dll SCEDII dll BCP Server gt D MCServer M lt 4 digit member code of BCP bank gt for eg D MCServer M0101 e fecapicfg ini BCP Workstations gt D MCClient Common e FECAPI dll e SCEDII dll BCP Server RENTAS MC IT Service Provider Malaysian Electronic Clearing Page 97 of 101 Corporation Sdn Bhd 2015 Confidential This document is prepared by Malaysian El
16. Continuity Management BCM 27 1 The Participants BCM readiness can be ascertained by conducting the Business Continuity Plan BCP and Disaster Recovery Plan DRP exercises 27 2 Participants are required to conduct BCP and DRP exercises by operating using their RENTAS MC System at their respective recovery DR at least six 6 times a year with live transactions of which two 2 of them involve connecting to MyClear s recovery site as illustrated below No of Exercises Participant s System BNM MyClear s System Note Participants will be notified accordingly whenever MyClear operates its services from its Recovery Centre 27 3 Scenarios for the BCP and DR exercise may include but are not limited to the following Scenario Operational Location MC MC Server Network Participants Internal Workstation Connectivity Systems 1 DR Production Site Production Site Production Site 2 DR DR Production Site Production Site 3 DR DR Production Site DR 4 DR DR DR Production Site 6 For Participants who have completed the requirements as at 31 December 2014 they shall attempt to cover as many applicable scenarios as possible until the full implementation of new RENTAS scheduled in 2016 7 Network connectivity refers to the point where the NWI originate at the Participant s site 8 Participant s Internal Systems refers to all systems belonging to the Participant that origina
17. Money Market MM Foreign Exchange FX deals 9 9 1 Deals transacted before 5 00 pm are to be settled by 5 30 pm 9 10 Forward Dated Transactions 9 10 1 Participants may key in through their MC same day value and forward dated transaction as follows i IFTS One 1 Business day forward dated ii PvP Forward dated for up to one 1 calendar year and iii SSDS Forward dated for to one 1 calendar year 9 11 During the MYR Evening Settlement Window Participants shall only perform transactions to facilitate the settlement of Interbank GIRO clearing positions Malaysian Electronic Clearing Page 29 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 10 0 MYR Settlement Account and Settlement Finality 10 1 All RENTAS MYR Settlement Accounts and Securities Accounts are maintained with BNM Hence RENTAS MYR transactions are settled across the books of the central bank The settlement asset is a claim on the central bank 10 2 All RENTAS payments are final and irrevocable after the paying
18. Participant submits the payment to RENTAS CHS or Mini RENTAS in the event the contingency system is activated in accordance with Clause 29 2 and the payment has met all conditions necessary to execute the final transfer of funds across the books of BNM The conditions for final settlement across the books of BNM are as follows 10 2 1 Paying Participant has sufficient liquidity to cover the payment 10 2 2 Paying Participant is in good standing whereby its membership status is not suspended frozen or terminated 10 2 3 Value date of payment is a Business day 10 2 4 Receiving participant is in good standing whereby its membership status is not frozen or terminated 10 2 5 Payment submission time is within the MYR Settlement Business Hours specified in Clause 9 0 10 2 6 The payment Message content and remittance information meets the requirements specified herein 10 3 Once all the above conditions are met the Paying Participant s account is debited and receiving Participant s account is credited on a final and irrevocable basis 10 4 All RENTAS SSDS sales and repos are final and irrevocable after the seller submits the transaction to RENTAS CHS or Mini RENTAS in the event the contingency system is activated in accordance with Clause 29 2 the buyer confirms the transaction and the transaction has met all conditions necessary to execute the final transfer of funds across the books of BNM from the buyer to seller s S
19. THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 5 5 RENTAS iLINK 5 5 1 RENTAS iLINK is a web based system that provides real time information such as cash positions securities holdings and Settlement status of transactions 5 5 2 RENTAS iLINK also acts as a Participant Terminal that i Allows initiation of foreign currency funds transfer and provides real time on shore foreign currency settlement to Participants who maintain foreign currency accounts with Onshore Settlement Institutions Please refer to the Operational Procedures for Foreign Currency Settlement in the RENTAS for further details and ii Allows initiation of CSCS Settlement instructions and custody operation instructions Malaysian Electronic Clearing Page 20 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 5 6 RENTAS MC Straight Through Processing STP Module for MYR Settlement 5 6 1 This is an optional module which provides for automated and online tr
20. This field is mandatory and shall be completed by Participants 7 3 For Participants who accept cash remittances over the counter they need not complete this field for such transactions 7 4 MyClear shall assume that all relevant particulars or the identity of the third party has been captured and verified by the Participants 7 5 Participants shall adhere to the following in completing this field i The branch number prefix shall be completed with 0001 if there is no branch code ii If there is a branch code and the code is less than four 4 digits the remaining digits shall be padded with trailing spaces iii The account number field shall be completed in numeric only and shall not contain any dashes or special characters iv If the account number is less than 24 digits the remaining digits shall be padded with trailing spaces 8 0 Name of Ordering Party by order of 8 1 The Name of Ordering Party by order of refers to the name of the sender who requested for the IFTS funds transfer 8 2 This field is mandatory Participants shall complete this field and ensure that it is completed with the correct customer name s 8 3 MyClear assumes that all relevant information of the third party has been captured correctly and verified by the Participants 8 4 Participants are advised to inform and educate their customers to furnish the correct information when initiating IFTS funds transfers 8 5 Participan
21. addition to Clause 6 2 Participants shall ensure that i the Beneficiary s statement displays the Ordering Party s Name Payment Reference Number and Payment Description ii the Ordering Party s statement displays the Beneficiary ss Name Payment Reference Number and Payment Description 6 4 Participants shall state the return reason if they are returning the payment in the Payment Details field 6 5 For Government agencies accounts Participants shall adhere to the instructions for the payment details field issued by the Government 10 In line with Anti Money Laundering and Anti Terrorism Financing Act AMLA 2001 requirements Malaysian Electronic Clearing Page 71 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 7 0 Account Number Field by order of Teale The Account Number by order of field comprises a 4 character alphanumeric branch code followed by a 24 character alphanumeric account number and refers to the account number of the sending customer 7 2
22. aia aigi 18 6 0 RENTAS Memberships icccseccctccstevcisi cee lei waccu ce sste cgetaneaa en iaedevlaceensavagebeevsceehucdvacctenduaeeiveeeeezes 22 7 0 Admission of New Participant for MYR Settlement in RENTAS eeccceeeeeeeeeteeeeteeteeeeeeees 24 8 0 Existing RENTAS Foreign Currency Participants or Cross Border Securities Custody Services Participants Subscribing to MYR Settlement Services ccccccceeseceesesteeeeeeeeees 26 9 0 MYR Settlement Business HOUrS ccccccceeseeceeeeeceeeeeeeaeeeeaeeseeeeeceaeeseaaeseeaeeseaeeesaeeeeaaeseeeeesaas 27 10 0 MYR Settlement Account and Settlement Finality 0 cc eeeceeeeeeeeeeeeeeeeeeeeeeeeeeesaeeeeeeeeeeee 30 11 0 MYR Intraday Credit and Auto Collateralized Overnight Funding Facilities 32 12 0 STP Requirements for Efficiency PUrPOSES cccecceeeeeceeneeeeeeeeeeaeeeeaaeeeeeeeseeeetaesteaeeseeeees 37 13 0 Queue Management sniene iiaii iaa iii iiaeie a iaai i aiia aa idi aian 38 14 0 SSDS ProCOSSinG nineu ai ins Adee ade laiia iii Rey aa ete ai Ea daa iiaa ian 39 15 0 Request for Extension of PvP Link Cut off Time eeeeeeeeeeeeeeseeesresrresrrssrissrrnsrinsrensrresrrns 42 16 0 Request for Extension of MYR Settlement Cut off Time cccccccesseeseeseeeeseeeeesseeeeeseenaees 43 17 07 Inceident Report R ctesssce tect cectctunce teutl seeechurce cba eetedate cd ebdteevecher EAEN ENE A EEEREN 45 18 0 Compensation on Inter Bank Failed Settlement
23. are as follows Clause 12 5 e New provision on Liquidity Optimizer Settlement Facility Clause 14 2 e Amended the exceptional circumstances under which MyClear can consider a RENTAS cut off extension Clause 14 10 e Deleted the statement including BNM Clause 17 11 e Replaced the word punitive with higher Clause 25 2 e Updated the Note below the diagram to incorporate the following Participants will be notified accordingly whenever MyClear operates its services from its Recovery Centre Clause 25 3 e Updated the scope of testing for greater clarity Guideline II Clauses 2 2 6 i and ii Malaysian Electronic Clearing Page 2 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Version Date of No Update Summary of Change Updated By e Removal of indemnity notations found in Version 1 0 for standardization with indemnity notation found in Clause 3 1 Appendix I MyClear Payment Services e Updated the following email address o slkoh myclear org m o tunku
24. both payments and securities Foreign Currency Payment Services only specify currencies Foreign Currency Settlement Services both payments and securities specify currencies m Securities Services only We appoint the following institution as the authorised agent to manage and operate our daily operation for both securities transactions and the corresponding payment transactions in the RENTAS system Name of Agent Currency Cross Border Securities Custody Services 2 As the owner of the stipulated account s in RENTAS we hereby agree to abide by all rules operational procedures and guidelines issued by Bank Negara Malaysia and or MyClear from time to time 3 We hereby authorise MyClear to disclose information pertaining to my organisation s debt securities holdings under all custody codes in RENTAS to facility agents for the specific purpose of administering the debt securities Yours sincerely Authorised Signature and Institution Official Stamp Name For and on behalf of Official stamp Malaysian Electronic Clearing Page 89 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT
25. by MyClear 25 3 Participants shall check their billing advices and inform MyClear of any discrepancies including erroneous billing within fourteen 14 calendar days of receipt of the billing statements Malaysian Electronic Clearing Page 55 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 26 0 Online Host Enquiry 26 1 Participants may perform online queries in RENTAS MC or RENTAS iLINK to obtain up to date RENTAS MYR Settlement information Malaysian Electronic Clearing Page 56 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes Document Ref No 500 80 1 0000141 OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 27 0 Business
26. circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Appendix Ill Incident Report From Participants To Director Please use institution s letterhead Large Value Payments and Securities Services Division Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 10 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC Subject Tuan Incident Report From Participants Attached herewith the Incident Report for your attention and or further action System Affected RENTAS eSPICK please circle one From Date of Report to send latest one day after the incident Date and Time of Incident Chronology of Incident Causes Action Taken Preventive Measures Information Required Total Value of Amount of Total No of PEA No of Counter parties Transactions Pending in Settlement Failure Transactions Pending RM in RM affected Name Designation Refer to authorised signature list highest ranking Malaysian Electronic Clearing Page 86 of 101 Confidential Corporation Sdn Bhd 2015 This docume
27. document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 19 0 Managing Unpaid Credit Facilities Managing Unsettled MYR Intraday Credit 19 1 Participants are required to ensure that they have sufficient funds to repay and settle all MYR Intraday credit extended by BNM before the MYR Settlement Cut off time 19 2 Towards this end Participants shall monitor closely the amount of MYR Intraday credit that is not repaid after the scheduled MYR Intraday credit cut off time Prior to the MYR Intraday credit cut off time any excess balance in the Participants MYR Settlement Account will be used to fund outgoing transactions 19 3 After the MYR Intraday credit cut off time RENTAS will re prioritize how excess funds are applied and will automatically apply these excess funds towards repaying MYR Intraday credit After all MYR Intraday credit is repaid RENTAS will allow Participants to utilize the remaining excess balance for transactions 19 4 Should a Participant encounter difficulties in repaying MYR Intraday credit sixty 60 minutes before the scheduled MYR Settlement Cut off time the Participant shall immediately determine the following 19 4 1 If there are any MYR incoming trans
28. or part reformatted or altered in any way for either internal or external purposes Document Ref No 500 80 1 0000141 OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 7 11 Establish processes internal controls and procedures to ensure that RENTAS MYR Settlement operations are carried out with minimal risk to the Participants counterparties and MyClear 7 12 Notify MyClear s Payment Services Section for the activation of access to RENTAS iLINK and 7 13 Notify MyClear in writing two 2 weeks before the actual implementation date of operations Malaysian Electronic Clearing Page 25 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 8 0 Existing RENTAS Foreign Currency Participants or Cross Border Securities Custody Services Participants Subscribing to MYR Settlement Services 8 1 Existing RENTAS Participants in RENTAS Foreign Currency Se
29. returning a payment that could not be posted to the beneficiary account 2 1 4 The applicable interest rate termed as Overnight Rate in the prescribed formula under Clause 2 2 of this Guideline shall be the overnight policy rate as published by BNM 2 1 5 Other costs and charges such as forex cover cable charges etc shall be excluded when computing compensation for MYR inter bank payment errors 2 1 6 The compensation rules are also applicable to Participants and customers which appoint the Participants as agents to handle their inter bank payments The Participants are reminded to advise their customers of the application of the administrative cost of RM200 00 Malaysian Electronic Clearing Page 76 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 2 2 Compensation Computation Formula 2 2 1 2 2 2 The paying Participants making any requests should inform the receiving Participants of the details of the payment to which such request relates and the particulars of the account to which it should be
30. s Securities Account is credited and the seller s Securities Account is debited on a final and irrevocable basis simultaneously 10 6 All RENTAS SSDS free of payment transfers are final and irrevocable after the transferring Participant submits the transaction to RENTAS CHS or Mini RENTAS in the event the contingency system is activated in accordance with Clause 29 2 the receiving Participant confirms the transaction and the transaction has met all conditions necessary to execute the final transfer of securities from the transferring Participant to the receiving Participant s Securities Account The conditions for final settlement across the books of BNM are as follows 10 6 1 Transferring Participant has sufficient securities to deliver 10 6 2 Both transferring and receiving Participants are in good standing whereby their membership status are not suspended frozen or terminated 10 6 3 Value date of payment is a Business day 10 6 4 Securities transacted is valid transferable and has not matured 10 7 Once all the above conditions are met the transferring Participant s Securities Account is debited and the receiving Participant s Securities Account is credited on a final and irrevocable basis 10 8 For USD securities settled on DvP via USD CHATS the transactions are considered final when 10 8 1 the US dollar securities is credited into the purchaser s account in RENTAS and 10 8 2 cash is transferred to the sel
31. satisfied that the beneficiary s account had been credited erroneously and The funds are still in the beneficiary s account vii The receiving Participants shall notify the beneficiary on the erroneous Credit prior to debiting the account and viii The refund is executed by initiating a new transaction since the mis sent transaction s settlement is already final and irrevocable The receiving Participants making the refunds to the paying Participants shall be entitled to an indemnity from the paying Participants The nature of indemnity is intended to protect the receiving Participants from any risk loss or cost as a result of the paying Participants having entertained a request by its customers to cancel a prior payment to the account of the receiving Participants customers As such paying Participants are advised to execute the indemnity only for their own payment errors and to be cautious in executing their customers request to recall payments which may be under the guise of mis sent payments 2 2 4 3 If a wrong payment is made before or at 5 30 pm the receiving Participants will on a best effort basis return the funds on the same day at no cost to either party However if the funds are returned before 5 30 pm on the next Business day the paying Participants is entitled to the use of funds from Day 1 onwards i e the day the wrong payment was made Malaysian Electronic Clearing Page 79 of 101 Confi
32. the next Business day in the event of a holiday the proceeds of the transactions remain unchanged MyClear will not input additional days of accrued interest or other adjustments arising from the delayed Settlement due to holidays 14 6 Private Debt Securities Non specified RENTAS Securities 14 6 1 Subject to funds availability all same day value and forward dated transactions shall be credited to or debited from the MYR Settlement Account of the Participants on the same day or on value date as the case may be Malaysian Electronic Clearing Page 40 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 14 6 2 All interest coupon dividend and redemption payments will be paid on a Business day In the event that the interest coupon dividend or redemption date falls on a holiday the payment of interest coupon dividend and redemption proceeds shall follow as stated in Part XI Holiday Convention of the Operational Procedures for Securities Services Malaysian Electronic Clearing Page
33. 0 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 11 2 Participants shall verify and ensure the correctness of the transaction information at all time to mitigate the risk of wrongly crediting or debiting accounts Malaysian Electronic Clearing Page 74 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Guideline Il Guidelines on Compensation on Inter Bank Failed Settlements 1 0 Principle and Scope 1 1 In the event of delayed payment or Settlement failures for MYR transactions a mechanism for computing compensation is provided in this Guideline The mechanism works on a compensation basis to cover losses The mechanism is not intended to be punitive as no Participant shall benefit from the errors or Settlement failures of other Participants Participants shall resolve and settle any compensation claim within thirty 30 working days from the date of the claim 1 2 The paying Participant shall compensate the receiving Participants for loss of i
34. 0000141 Version No Date of Update Summary of Change Updated By Clause 11 5 Provide clarity that securities in the collateral K account account are not eligible as collateral two Business days before redemption Clauses 11 14 Clause 11 26 New clauses to specify the ACOFF process Clause 17 2 New requirement on submission of incident reports Clause 19 12 Add new clause to explain how unpaid ACOFF is managed Clause 25 3 To provide clarity that issues with billing has to be reported to MyClear within fourteen 14 calendar days Clause 27 2 Participant s operating site of RENTAS MC should be read and understood as e Production Site e Disaster Recovery Clause 27 3 Add additional footnote no 5 at the word of following e For participants who have completed the requirements as at 31 December 2014 they shall attempt to cover as many applicable scenarios as possible until the full implementation of new RENTAS which is scheduled in 2016 Clauses 37 1 37 9 Specify new processes for Auto Deposit Acceptance Facility ADF Guideline Guideline on MYR Third Party Payments Clause 6 2 Specify Payment Reference Standards to facilitate reconciliation under the ePIF framework Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 9 of 101 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd
35. 0141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix VII Example of MC 400 Screen Shot Example of MC 400 Screen Shot J 2 3 4 5 6 7 8 12345678901234567890123456789012345678901234567890123456789012345678901234567890 J BBBBBBBBBBB DD WW B1 CONSTRUCT SINGLE CREDIT PVP XXXXXXXXXX DDMMMYYYY HH MM 2 3 Fr Member lt X 17 gt lt Ca oO 5 SS Ss a a E E gt 4 To Member lt X 17 gt lt Ce 80 eS eS Se Ss gt 5 TRN XXXXX Rel TRN lt X 16 gt 6 Amount MYR 9 999 999 999 99 Value Date DDMMMYYYY 7 Deal Code Stock Code lt X 16 gt Auto Construct CR Noti C Y N 8 Beneficiary By Order of 9 A C No XXXX lt X 24 gt A C No XXXX lt X 24 gt 10 AID XXXXXX Name AID XXXXXX Name 11 lt X 35 o H Sen S lt X 35 Soe SSS gt 12 lt X SG eae Se Se SS lt Xol hf aa ee ape SS 13 Address Address 14 lt De 3 0 WS Fie eS lt K ABI aie Gee 15 lt KIN Sos se A lt XB Se Sao Se SS SS 16 Payment Reference 17 RSS eee Xi 35 ee ee Member To Member Information 18 Payment Details Re Se Ss M35 Sees oe ay Ap ree Ss Se E Xe Bo t See Se ae LEAB ces Xx G35 Se ee A Salas ata Ko
36. 11 1 The first Participant s penalty is calculated based on the duration from the scheduled MYR Settlement Cut off of 6 00 pm to the extended cut off time requested by the first Participant 16 11 2 The second Participant s penalty is calculated based on the duration from the scheduled MYR Settlement Cut off of 6 00 pm to the extended cut off time requested by the second Participant 16 12 MyClear will notify the CEOs of Participants who have incurred recurring penalties for cut off extensions Malaysian Electronic Clearing Page 44 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 17 0 Incident Report IR 17 1 Once MyClear has granted the Participants request to extend the MYR Settlement Cut off time the Participants are required to submit a complete Incident Report IR to MyClear via facsimile within 24 hours of the initial cut off extension request Please refer to Appendix III for the IR template 17 2 Apart from IRs for MYR Settlement Cut off extensions Participants are also req
37. 5 million against Eligible Securities of the eligible Participants The eligible Participants will be provided with a collateral account K account to facilitate the earmarking of collateral securities for the MYR Intraday credit drawdown 11 4 The repayment of MYR Intraday credit facility is automatically done whenever there are sufficient funds in the Participants MYR Settlement Account to redeem the earmarked securities in their K account At MYR Settlement Cut off time MyClear will impose a penalty refer to Appendix IIl of the Participation and Operation Rules for Payment and Securities Services on Participants who fail to redeem their MYR Intraday credit facility 11 5 In order to utilize the MYR Intraday credit facility Participants must have adequate Eligible Securities in their K account Eligible Securities would no longer qualify as collateral two 2 Business days before the securities Final Redemption Date or Partial Redemption Date or Early Redemption Date Participants shall monitor the redemption profile of the Eligible Securities in their K account to ensure that there is no shortfall in collateral due to upcoming redemptions 11 6 BNM will exercise its sole discretion in tagging and identifying a certain value of Eligible Securities Identified Securities against the MYR Intraday credit facility granted to each Participant at any given time Malaysian Electronic Clearing Page 32 of 101 Confidential
38. All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Document Ref No 500 80 1 0000141 Version 2 1 Version Date of Summary of Change Updated By No Update Clause 6 3 New clause added To specify the Payment Reference Standard for both Beneficiary party and Ordering party Guideline II Guidelines on Compensation on Inter Bank Failed Settlements Clause 1 1 To specify the resolution time for compensation claim to ensure timely completion APPENDICES Appendix XI RENTAS BCP Live Run Checklist e All references made to MyClear s IT Service Provider replaced with RENTAS MC IT Service Provider This is to improve clarity which party is accountable for RENTAS front end support e All references made to chs backup settle bnm gov my replaced with chs backup settle2048 bnm gov my This is to reflect the use of new 2048bit digital certificate 2 1 16 April 2015 Document Information MyClear Removal of Release Date to avoid confusion with Effective Date Clause 9 2 To remove the Auto Deposit Facility and include the Activation of ACOFF in the MYR Settlement Business Hours Clause 11 14 11 30 To rephrase the entir
39. Boye aS he Se KONE KaSS tee Se SS KE Sa SS KuSo Se Sa Kim SS Ss MSO tes See ee a Next Function ___ Next BOR F2 Verify F3 Exit F7 Next Functio 8 Main F12 Previous A Transaction Reference Number TRN Code B Beneficiary Account Number F Account Number By order of C Beneficiary Name G Name of Ordering Party By order of D Beneficiary Address H Address By order of E 2 A Payment Reference Number I Member to Member Information E 2 B Payment Details Malaysian Electronic Clearing Page 91 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix VIII Contact Person for Daily Operation of RENTAS Please use institution s letterhead To Managing Director Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 12 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC Subject Contact Person for the Daily Operation of RENTAS Tuan Please be informed that the following is our contact person of RENTAS
40. CURITIES SYSTEM RENTAS Version 2 1 APPENDICES Appendix RENTAS Contact Details Office Addresses and Contact Details Production Back up Recovery Centre Address Malaysian Electronic Clearing BNM Recovery Centre Corporation Sdn Bhd MyClear Lot 1064 Subang Hi Tech Industrial Large Value Payments and Securities Park Services Division Off Jalan Delima 1 1 Level 10 Tower 2A 40150 Batu Tiga Avenue 5 Bangsar South Selangor 8 Jalan Kerinchi 59200 Kuala Lumpur Telephone 03 22648667 03 56378575 Number 03 22648668 03 56378446 03 22648671 03 56378227 03 22648672 Fax Number 03 22648669 03 56357944 E mail address rentas myclear org my MyClear Payment Services Application of Membership Opening of Securities Account and Customer Services RENTAS Operation Team Contact Number 03 2264 8666 03 2264 8671 03 2264 8672 03 2264 8673 03 2264 8674 03 2264 8675 BNM s RENTAS Operations at Jabatan Pengurusan dan Operasi Matawang Opening of MYR Settlement Accounts BNM s Payment and Securities Settlement Operations Name Phone Number Mobile Number Email address Chin Yi Sheng 03 26907417 yisheng bnm gov my En Mohd Noor Ali 03 26907414 cmali bnm gov my En Azlan Mohd Shariff 03 26988044 ext azlan bnm gov my 8399 Malaysian Electronic Clearing Page 83 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malay
41. File on BCP Server amp RENTAS MC BCP Server and BCP Workstations BCP pica e Rename D RentasPkK profile_bcp ini as Workstation D RentasPK profile_bcb_ lt Fl s Member Digit Code gt ini e Rename D RentasPkKl certs as D RentasPKl certs_ lt Fl s Member Digit Code gt e Rename D RentasPKI profile_bcp_0101 ini as D RentasPK profile_bcb ini e Rename D RentasPKi certs_0101 as D RentasPKl certs Repeat the above steps for other workstations to be used for BCP Malaysian Electronic Clearing Page 100 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix XII Request Form for RENTAS Test Environment 1 Requester s Information Name BIC Code Digit Code Date E mail Contact No 2 Specify date s nee ded please tick January LH L 2 L 3 Ll4 L15 February March Ll6 8 9 L10 April 11 13 14 15 16 18 19 May June 23 24 July August September October November December L126 128 029 gguggggdoddk Management Approval must be an Authorised S
42. IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Appendix VI Example of MCPC Screen Shot Example of MCPC Screen Shot amp Construct Single Credit P P From Member To Member TRN pvpo gt Total Amount Deal Stock Code Rel TAN r Beneficiary Account No 4 AID Address By Order of AID Name Address Account No 4 PBBEMYEL gt PUBLIC BANK BHD MBBENYEL gt PALAYAN BANKING BHD Value Date 2870272005 Cross Currency Payment Information J Auto Construct Credit Notification Save A Transaction Reference Number TRN Code B Beneficiary Account Number C Beneficiary Name D Beneficiary Address E 2 A Payment Reference Number E 2 B Payment Details Refresh F Account Number By order of G Name of Ordering Party By order of H Address By order of I Member to Member Information Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 90 of 101 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 000
43. Instruction s In Priority Queue 87 Appendix V Form A New Participant 2 0 00 cccceeeeteeeeeeneee erence ee teaeeeeetaaeeeeetaeeeeetaeeeeetaeeeeeeaeeeenes 88 Appendix V Form B Existing RENTAS Participant Extends Membership to MYR Settlement SONIC EAE E et hee ete eed as aden ea te lene ened 89 Appendix VI Example of MCPC Screen Shot ccccceccceceeeeeeeeeeeee eee eeeeaeeseaeeseeeeeseeessaeeseeeseeeee 90 Appendix VII Example of MC 400 Screen Shot ceccccccceeeeeeeeeeeeseeeeeeeaeeeeeeseeeeeseeessaeeneneeseeeee 91 Appendix VIII Contact Person for Daily Operation of RENTAS cccecesceeeeeeeseeeeeeeeeeeneeseeeeees 92 Appendix IX RENTAS Authorised Signatories List 0 cccceceseeseeeeeeeeeeeeneeseeeeeteeeesaeeseeeseeeee 93 Malaysian Electronic Clearing Page 11 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix X Activation of Member Computer Back up System at MyClear ccccceeeeseeeereees 94 Appendix XI RENTAS BCP Live Run Chec
44. NTAS the last resort contingency system Numbering of clauses Due to insertion of Clause 30 0 all other clauses beginning from Clause 30 0 in Version 1 3 has been re numbered 1 Clause 33 2 Added a form Appendix XII for participants to request use of RENTAS test environment Appendix XII New request form for RENTAS test environment 1 5 11 Sept 2012 Clause 9 2 Extension of cut off time for all repayments of maturities from 11 00am to 11 30am MyClear 1 6 6 Sep 2013 Clause 9 2 Added new clause to incorporate the revised settlement time for FPX Direct Debit and Interbank GIRO clearing positions Clause 11 4 Provide clarity that securities due for redemption are not eligible as collateral for intraday credit Clause 30 13 Added new clause to make it compulsory for RENTAS Participants to participate in annual mini RENTAS test run Guidelines appendices and relevant clauses To change the BCP related communication channel to compliance lvp myclear org my Appendices and relevant clauses Reflect MyClear s new office address Director Large Value Payments and Securities Services Division Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 10 Tower 2A Avenue 5 Bangsar South MyClear Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 6 of 101 Confidential This document is prepared by Malaysian Electronic Clearing C
45. P and DR scenarios every three years e Provide definition for Network Connectivity and Participant s Internal Systems in the RENTAS BCP and DR scenarios for further clarity e Define method of computing the duration of three years given to participants to cover BCP scenarios Appendix Change the domain of RENTAS email address from rentas bnm gov my to rentas myclear org my Malaysian Electronic Clearing Page 7 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Version No Date of Update Summary of Change Updated By 1 8 11 Aug 2014 Clause 27 3 To provide definition of network connectivity as follow Note Network connectivity refers to the point where NWI originate at the Participant s site MyClear 2 0 5 Jan 2015 Clause 5 4 1 To provide clarity that BNM owns the e PKI system Clause 8 3 To add in Clause 7 9 as one of relevant clause to be read in Clause 8 3 Clause 9 1 MYR Settlement Business hours is extended to
46. Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 24 0 Minimum Transaction Amount 24 1 The minimum amount for MYR third party payments is RM10 000 The minimum limit is not applicable for payments executed in favour or by order of BNM the Government statutory bodies or any other institutions specified by MyClear from time to time 24 2 There is no minimum amount for payment in favour or by order of the RENTAS MYR Settlement Participant s own account Malaysian Electronic Clearing Page 54 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 25 0 Billing 25 1 Participants are subjected to fees and charges as stated in Appendix III of the Participation and Operation Rules for Payments and Securities Services 25 2 MyClear will automatically debit the Participants MYR Settlement Accounts for the billed amount on the first Business day of the following month or any time as determined
47. S operation BCP Participant e Logon Windows workstation as rentas Workstation e From desktop locate the Fl s RENTAS folder run MCClient application e ForMC PC member use the Production user id to sign on MCClient e For MC 400 member use the user id created at task 7 to sign on MCClient Malaysian Electronic Clearing Page 99 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 At BNM BCP After End of Operations Task Task Description Where By Whom Status 1 Remove Member Profile on BCP Workstation BCP MyClear e Requires only one 1 authorised user from BNM Workstation e Remove member profile for the selected FI Please refer to RENTAS BCP User Manual Repeat the above steps for other workstations to be used for BCP 2 Member Deactivation on BCP Server BCP Server MyClear e Requires two 2 authorised users from BNM e Deactivate RENTAS member for selected FI Please refer to RENTAS BCP User Manual 3 Revert Certificate Files and ePKI Profile
48. SECURITIES SYSTEM RENTAS Version 2 1 4 5 For non third party transactions this field shall be completed with the correct RENTAS Member BIC Code e g BNMAMYKL for BNM 5 0 Beneficiary Address Field 5 1 The Beneficiary address field refers to the address of the beneficiary of the payment and is not a mandatory field 5 1 While the Beneficiary address field is not a mandatory field in RENTAS MC Participants shall fill in the address of the beneficiary No other information shall be included in this field 6 0 Payment Details Field 6 1 The Payment details field shall be used to provide relevant information that allows the beneficiary to understand the purpose of the payment and to facilitate reconciliation 6 2 Payment details is a mandatory field and Participants shall complete the field with accurate information The Payment Details field is divided into two 2 parts namely Payment Reference Number and Payment Description Participants may enter the reference or invoice numbers in Payment Reference Number and populate Payment Description with the purpose of payment remitting customers contact information as well as other information that the remitting customer wishes to provide to the beneficiary If there are no payment details available the Participants shall insert Not Applicable in the payment details field or leave the field blank 6 3 In
49. Server application e ForMC PC member use the Production user id to sign on MCServer Malaysian Electronic Clearing Page 98 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Document Ref No 500 80 1 0000141 Version 2 1 Task Task Description Where By Whom Status e For MC 400 member use the default user id provided by RENTAS MC IT Service Provider to sign on MCServer 8 Create User Profile for MC 400 member only BCP Participant e Logon Windows workstation as rentas Workstation e From desktop locate the Fl s RENTAS folder run MCClient application e Use the default user id provided by RENTAS MC IT Service Provider to sign on MCClient application e From MCClient main menu go to Database gt User Parameter e In User Parameter Maintenance screen add in user information e Use another default user id provided by RENTAS MC IT Service Provider to sign on MCClient application e In User Parameter Maintenance screen approve the user record 9 Proceed with the RENTA
50. Services Act Islamic Banks liquidity obtained under ACOFF is strictly on an overnight basis only If an Islamic Bank who had obtained liquidity under ACOFF subsequently receives incoming funds from a surplus Interbank GIRO clearing position in the same MYR Evening Settlement Window the Islamic Bank would not be able to undertake a same day re payment of ACOFF using the incoming funds 11 29 Islamic Banks may within 90 minutes of the Repayment of ACOFF to BNM time specified in Clause 9 2 make an offer to repurchase the Identified Securities that were sold to BNM during the MYR Evening Settlement window on the previous Business day BNM at its absolute discretion may accept the repurchase offer and sell the Identified Securities to the Islamic Banks at a price agreed by both parties 11 30 For Islamic Banks that are unable to settle the repurchase transaction described in Clause 11 28 RENTAS will automatically draw on the Islamic Banks Intraday Credit if available to facilitate the repurchase Malaysian Electronic Clearing Page 36 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1
51. THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 23 0 Authenticity Confidentiality and Irrevocability of the RENTAS MYR Settlement Messages 23 1 Participants cannot repudiate any transmitted messages or payments that they have digitally signed 23 2 For forward dated transactions a digital signature is verified based on the validity of the corresponding digital certificate on the date the transaction is initiated 23 3 If a Participant has revoked a digital certificate all messages or instructions transmitted by and signed using the digital certificate prior to the revocation shall be deemed valid 23 4 Receiving Participants will receive a cryptographic error notification in their MC system when a transaction fails the digital signature verification The receiving Participant must then investigate the cause of the digital signature verification failure and validate the integrity and authenticity of the affected transaction manually to independently ascertain the legitimacy of the transaction Malaysian Electronic Clearing Page 53 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document
52. a and or MyClear from time to time 3 We hereby authorise MyClear to disclose information pertaining to my organisation s debt securities holdings under all custody codes in RENTAS to facility agents for the specific purpose of administering the debt securities Yours sincerely Signature of Chief Executive Officer Name For and on behalf of Official stamp Malaysian Electronic Clearing Page 88 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix V Form B Existing RENTAS Participant Extends Membership to MYR Settlement Service Please use institution s letterhead Date To Managing Director Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 12 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC Subject Confirmation of Participation in Additional Services We refer to the application on the above 1 We wish to extend our participation in RENTAS to MYR Payments Services only MYR Settlement Services
53. actions that will increase the MYR Settlement Account balance and allow the Participant to repay the MYR Intraday credit 19 4 2 If they have sufficient excess balances in the statutory reserve account that can be transferred to the MYR Settlement Account to repay the MYR Intraday credit 19 4 3 Whether they are able to source for funds from other Participants and 19 4 4 If there are any other avenues to source for funds 19 5 After exhausting all possible funding avenues indicated above the Participant may make a request for funding under BNM s Guidelines on Standing Facilities issued in May 2012 19 6 If funding is forthcoming from BNM the Participant s dealers must remain in the Participant s premises and must be contactable until RENTAS MYR Settlement Cut off 19 7 The Participant shall ensure that sufficient back office Settlement staff is available to complete the Settlement of the borrowing under the standing facilities The staff must be 4 If there are sufficient excess balances in the statutory reserve account that can be transferred to the Settlement Account to repay the MYR Intraday credit Participants must ensure that they remain in compliance with statutory reserve requirements Malaysian Electronic Clearing Page 47 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be r
54. activation is are as follows Thank you Authorised Signatory Authorised Signatory Official Stamp For MyClear Payments Services Use Only Message received by Request allowed disallowed by Time Fees Payable Note Affected Participants must arrive at MyClear s premises within one 1 hour after the request of activation has been granted by MyClear Please indicate your MC Malaysian Electronic Clearing Page 94 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix XI RENTAS BCP Live Run Checklist RENTAS BCP Live Run Check List Notes 1 Bring along Public Key Infrastructure e PKI Token 2 Bring along e PKI Certificate Files Copy folder named certs from RENTAS MC Cryptography Module installation path at RENTAS MC Workstation D RentasPK l certs 3 Bring along the e PKI Profile File Copy Profile ini from RENTAS MC Cryptography Module installation path at RENTAS MC Workstation D RentasPKI Profile ini 4 Bring along the source files or docume
55. alaysian Electronic Clearing Page 60 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 30 0 RENTAS CHS Failure at Both Live Site and Recovery Centre RC 30 1 In the unlikely event of total RENTAS CHS failure at both the Live Site and RC or the total failure of RENTAS Virtual Private Network MyClear may activate the contingency system known as Mini RENTAS 30 2 Mini RENTAS is intended to provide a minimal level of settlement services to RENTAS Participants 30 3 Mini RENTAS can be accessed through internet at https mr3 bnm gov my RENTAS oS Patines gt Mini RENTAS RENTAS CHS Balance and Stockholding of RENTAS Participants are replicate Upload in real time basis to Mini Transactions RENTAS to Mini RENTAS To revert to normalcy from Mini RENTAS 30 4 MyClear will make use of e mail SMS or BCP call tree to notify RENTAS Participants regarding activation of mini RENTAS MyClear shall transfer Participants most recent available Settlement Account balances and Securities Ac
56. ansmission of MYR transactions from Participants internal systems without the need for data entry or manual intervention at MC Malaysian Electronic Clearing Page 21 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 6 0 RENTAS Membership 6 1 Types of RENTAS membership 6 1 1 RENTAS Membership is open to entities that meet the following criteria i Financial Institutions Fls regulated by BNM and institutions under BNM s purview ii Investment banks co regulated by BNM and the Securities Commission of Malaysia iii International Central Securities Depository ICSD and National Central Securities Depository CSD iv Central banks monetary authorities qualified foreign licensed financial institutions and multi lateral development banks v Qualified domestic entities that provide payment and clearing services clearing houses vi Qualified institutions whose admission will promote the development of the Malaysian financial markets
57. azlan myclear org my o ashikin myclear org my o shukor myclear org my 1 2 23 Feb 2012 Title of Operational Procedures e Amended the title of Operational Procedures for Real Time Electronic Transfer of Funds and Securities RENTAS to Operational Procedures for MYR Settlement in the Real Time Electronic Transfer of Funds and Securities System RENTAS Clause 1 0 e Added the word MYR Settlement to indicate that the Operational Procedures are for MYR Settlement services only Clause 1 2 2 e Added reference to the new Operational Procedures for Foreign Currency Settlement in RENTAS issued in February 2012 Clause 4 0 e Updated the RENTAS architecture to reflect additional foreign currency settlement services Clause 6 1 e Amendment to the classes of RENTAS membership due to the introduction of Foreign Currency Settlement Services Added new class of membership for foreign central banks and multi lateral development banks Clause 8 0 e New process for existing RENTAS Foreign Currency Participants to subscribe to MYR Settlement Services Clause 9 0 e Replaced RENTAS Operating Hours with MYR Settlement Business hours MyClear Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 3 of 101 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can
58. can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 1 0 Introduction 1 1 The Operational Procedures provides an overview of MYR Settlement in RENTAS 1 2 These Operational Procedures shall be read in conjunction with the following documents 1 2 1 Participation and Operation Rules for Payment and Securities Services 1 2 2 Operational Procedures for Foreign Currency Settlement in RENTAS 1 2 3 Operational Procedures for Cross Border Securities Custody Services in RENTAS 1 2 4 Bank Negara Malaysia s Guidelines on Standing Facilities and 1 2 5 Other relevant guidelines notices circulars issued by MyClear or BNM from time to time Malaysian Electronic Clearing Page 14 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 2
59. cenarios should be tested every three 3 calendar years For participants with production site back up server this scenario will only count once towards the requirement to perform six 6 BCP and DR Exercises 27 4 Two 2 days prior to conducting the exercise Participants are required to notify MyClear of their plan to conduct the exercise via e mail at compliance lvp myclear org my 27 5 Subsequently within seven 7 working days from the exercise date Participants are required to submit the Exercise Report to MyClear via email to compliance lvp myclear org my indicating the results of the exercise refer to Appendix II of the Participation and Operation Rules for Payments and Securities Services for the template 27 6 MyClear will monitor participants compliance with the BCM requirements specified herein and will impose penalties for non compliance The quantum of penalties is as specified in Appendix Ill of the Participation and Operation Rules for Payment and Securities Three 3 calendar years is calculated from May 2011 or for new Participants joining RENTAS after May 2011 from the commencement date of their RENTAS operations Malaysian Electronic Clearing Confidential Corporation Sdn Bhd 2015 Page 58 of 101 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part re
60. cheduled Time Actions 8 00 am MYR Settlement opening an Repayment of Automatic Collateralized Overnight Funding Facility 00 am ACOFF to BNM 8 30 am Start time for PvP Link to USD CHATS 8 45 am eSPICK normal clearing settlement 8 50 am MYR Settlement for Interbank GIRO clearing 1 window 11 00 am Forward value dated transactions including PVP DVP Settlement er Cut off time for all repayments of maturities and settlement for 30 am e Debit MEPS Cash and Shared ATM clearing 11 50 am MYR Settlement for Interbank GIRO clearing 2 window 2 50 pm MYR Settlement for Interbank GIRO clearing 3 window Cut off time to send PvP payment instructions to Participant s 3 30 pm banker in Hong Kong MYR Intraday Credit Cut off Warning 4 00 pm Cut off time for paying Participants to initiate MYR third party transaction and PvP transaction MYR Leg Asie MYR Settlement for Financial Processing Exchange and Direct m i Debit clearing 4 30 pm MYR intraday credit cut off No borrowing from K account 5 00 pm Cut off warning for PvP Link to USD CHATS 5 30 pm Cut off time for PvP Link to USD CHATS Cut off time for the repayment of MYR Intraday Credit Facility 6 00 pm MYR Settlement Cut off time Malaysian Electronic Clearing Page 27 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in w
61. count balances to Mini RENTAS Upon activation of Mini RENTAS Participants shall verify their Settlement Account balances and Securities Account balances accordingly 30 5 To perform settlement in Mini RENTAS Participants shall initiate transactions in Mini RENTAS by uploading the transactions in the same format as the interface file used to initiate transactions via RENTAS MC During activation Mini RENTAS would perform settlement by offsetting the outgoing payments against incoming payments in specified time intervals 30 6 Participants may make use of Mini RENTAS to perform online enquiry on their Settlement Account balances and Securities Account balances Malaysian Electronic Clearing Page 61 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 30 7 The following transaction types can be settled in Mini RENTAS upon activation by MyClear 30 7 1 IFTS Single Credit 30 7 2 IFTS Multiple Credit 30 7 3 IFTS Single Debit 30 7 4 SSDS Sale 30 7 5 SSDS Free of Payment and 30 7 6 SSDS In house
62. credited Late Intra day Money Market Transaction 2 2 2 1 2 2 2 2 When payment is not effected within thirty 30 minutes of the transaction the borrowing Participant Investee will be entitled to compensation according to the compensation formula below Amount x OPR R x Day 36500 where Amount Amount due for the Settlement of the MYR transaction OPR Overnight Policy Rate as published by BNM R Comprise of Reserve Cost Administration Cost and Penalty The rate is currently set at 0 5 and subject to change Day Delay will be deemed as one day for interest calculation When payment for an Intraday money market transaction has not been effected on value date by the Lending Bank Investor by 5 00pm the Intraday money market transaction would be deemed as a failed trade and no Settlement will take place Under such circumstances the Borrowing Participants Investee will be entitled to claim compensation according to the following compensation formula Amount x OPR R x Day 36500 where Amount Amount due for the Settlement of the MYR transaction OPR Overnight Policy Rate as published by BNM Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 77 of 101 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any
63. d MyClear Level 12 Tower 2A Malaysian Electronic Clearing Corporation Sdn Bhd 836743 D Avenue 5 Bangsar South Subsidiary of Bank Negara Malaysia No 8 Jalan Kerinchi 59200 Kuala Lumpur OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Document Details Effective Date 20 May 2015 Document Owner Large Value Payments and Securities Services Revision History Version Date of Summary of Change Updated By No Update 1 0 17 Feb 2011 Approved version MyClear 1 1 06 May 2011 Clause 8 2 MyClear e Added the statement No borrowing from K account Clause 8 6 e Amended the cut off time from 3 30pm to 3 00pm due to feedback arising from participants Restructured the statement Clause 9 2 e Replaced the statement but are not limited to with
64. dential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 2 2 4 4 If the wrong payment is made after 5 30 pm the receiving Participants has up to 5 30 pm the next Business day to return the payment at no cost to either party However if the funds are not returned by 5 30 pm the next Business day the paying Participants will be entitled to use of funds from Day 2 onwards please refer to Clause 2 2 of this Guideline for the use of funds compensation claim formula 2 2 5 Late Payments Repayments 2 2 5 1 Funds received after the scheduled MYR Settlement Cut off time will be considered as next day value Therefore the receiving Participants shall be entitled to compensation based on the Value Date Adjustment formula as per Clause 2 2 3 of this Guideline 2 2 5 2 The receiving Participants need not return the funds in order to claim the compensation 2 2 6 Unable to Apply Funds Received 2 2 6 1 When the receiving Participants receives a payment and is unable to apply the funds due to discrepancies or in
65. e all clauses on Auto Collateralized Overnight Funding Facility ACOFF to make it easier to understand Clause 37 0 To remove the entire clause on Auto Deposit Facility arising from the facility being called off effective 9th Feb 2015 Guideline Il 1 3 amp 1 4 To rephrase MYR Inter bank Payments to MYR Inter bank Settlements and MYR Inter bank failed payments to MYR Inter bank failed settlements in the Guidelines on Compensation on Inter Bank Failed Settlements to provide clarity to participants Malaysian Electronic Clearing Page 10 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Table of Content a FAO unt a cocol e1 co aeeerereetecrerereeerrceec A ter A errr A E errr ererrerrery ec 14 20 PULP OSC oE bd Sepa day ag bane seca dee Sa ube anest AA eva haeex sade ETE 15 3 0 Detinitionot RENT AS vss tacts ccc e aa a E a A semen E e a 16 4 07 QVERVIOW iiio iienaa iiia h a ea i a Deeds a a a a a diaa 17 5 0 System Component ienei iina iaaii ain a a
66. ectronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Document Ref No 500 80 1 0000141 Version 2 1 Task Task Description Where By Whom Status gt BCP Workstations gt D MCClient M lt 4 digit member code of BCP banks for eg D MCClient M0101 e fecapicfg ini 5 Restart BCP Server and workstations BCP Server amp RENTAS MC BCP IT Service gt BCP Server Workstation Provider e Stop CSP service for BNM e Start CSP service for BCP bank gt BCP Workstations e Stop CDM service for BNM e Start CDM service for BCP bank e Stop CDMProxy service for BNM e Start CDMProxy service for BCP bank 6 Restore Tables by FI for MC PC member only BCP Participant e Logon Windows workstation as super Workstation e Run MCSuper application from desktop e From MCSuper main menu go to Utility gt Restore Tables e In Restore Tables screen select ALL tables then un select 4 tables DEPTPARMT PRTDEV SYSPARMT WSPARMT 7 Startup MC PC Server Application BCP Server Participant e Logon Windows server as rentas e From desktop locate the Fl s RENTAS folder run MC
67. eee cece eeeaeeeeeaeeeeeee sae eeeaaeeeeaeeseeeeeseaeeetaeeseeeseeeee 64 33 0 Testing Procequrecsscic sides an a EA e aR ASE AE staid edd apie aban ta vette id paces O cate 65 B40 USer Man alS irirna staria eeinetan aai kia aa de dang wird a aa aa iaasa aia aaa Naa aaa aain 66 35 0 RENTAS Participants Directory ssseseessesenesinesrnssrnssirssrrssrrsstnsstnsstnsstnnstesstnnsnnnttnntnnntenn nnen nt 67 36 0 Customer SErViCE aier aean dessin te naa i aAa rede tea er act a a a a ieee 68 GUIDELINESE e a a a A a A A 69 Guideline Guidelines on MYR Third Party Payments cccccceeeceeceeeeeeeeeeeeeeceeeesaeeeeaeeeeeeeeeas 69 Guideline II Guidelines on Compensation on Inter Bank Failed Settlements ccccsseeeeeees 75 Guideline III Procedures for Activation of MC Back Up System at MyClear s Premises 82 APPENDICES etait street shes a E leas gat aes ta faust bala ees cat A ea Maret date tines es 2 83 Appendix RENTAS Contact Details 00 ccccceeecceeeeeeeeeeeeeeeeeeeeee ceases seaeeeeaee scenes seaeeetaeeseeeeeeeee 83 Appendix II a Request For Extension of RENTAS PvP Link Cut off Time ccceeeeeeeeeereees 84 Appendix II b Request For Extension of RENTAS MYR Settlement Daily Cut off Time 85 Appendix Ill Incident Report From Participant cccceeeeseeeeeeeeeeeeeeeneeeeeeaeeeeeeaeeeeeeaeeeeeeaeeeene 86 Appendix IV Request To Re sequence or Cancel Payment
68. en a MYR Settlement Account directly with Currency Management and Operation Department of BNM Please refer to Appendix for the contact details Open a Securities Account with BNM via MyClear if applicable Obtain a Bank Identification Code BIC by registering with The Society for Worldwide Inter bank Financial Telecommunication SWIFT The BIC will be used as part of a unique identifier code UIC for the Participant Obtain a digit code from BNM This code is to be used as the UIC for each Participant Acquire the RENTAS application software MC PC or MC 400 from MyClear s designated vendor Acquire the necessary application software hardware operating systems and database software that are compatible with RENTAS MC Deploy communication network for RENTAS Currently the system uses a communication network provided by TIME dotCom Sdn Bhd and an ISDN dial up provided by Telekom Malaysia TM Berhad Deploy e PKI security module HSMs tokens and certificates for RENTAS Establish a Business Continuity Plan BCP for the Participants RENTAS MYR Settlement operations 1 For institutions that are not under the purview of BNM the UIC will be provided by MyClear Malaysian Electronic Clearing Page 24 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole
69. endix II of Schedule of Fees and Charges from the Operating Procedures for MYR Settlement with new form to be used for the Request for Extension of RENTAS PvP Settlement Cut off Time e Schedule of Fees and Charges is now centralized in the Participation and Operation Rules for Payment and Securities Services Appendix II b e Form for Request for Extension of RENTAS Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 4 of 101 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Version No Date of Update Summary of Change Updated By MYR Settlement Cut off Time Appendix V Form A e New form to be used for the Confirmation of Participation Appendix V Form B e New form to be used for the Confirmation of Participation in Additional Services 1 3 30 Mar 2012 Clause 1 2 Added Clause 1 2 3 on Operational Procedures for Cross Border Securities Custody Services in RENTAS issued in March 2012 Clause 4 0 Added Euroclear CSDs Link into the diagram Clau
70. eproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 competent and must have familiarity with the construction of repo transactions or any other form of transaction used for the funding 19 8 If funding transaction cannot be completed by MYR Settlement Cut off time MyClear in consultation with BNM may opt to convert unredeemed MYR Intraday credit to an overnight repo The Participants shall grant BNM the sole authority to determine the rates tenor and other terms in converting the MYR Intraday credit into an overnight lending 19 9 As a final measure BNM reserves the right to take possession of the collateral i e collateralized loans against the eligible collaterals and has the authority to determine the value of the collateral If there is any shortfall in the collateral value against the unpaid MYR Intraday credit the Participants shall remain liable to BNM for the shortfall 19 10 MYR Settlement Cut off Time will not be closed until all MYR Intraday credit is repaid or extinguished If a MYR Settlement Cut off extension becomes necessary due to the Participant s inability to repay the MYR Intraday credit notwithstanding any penalties or punitive rates imposed by BNM the Participants wil
71. es are intended to standardize the content of key fields in RENTAS MYR IFTS messages for MYR third party payments to facilitate Straight Through Processing STP 2 0 RENTAS MYR IFTS Messages Fields 2 1 Attached in Appendices VI and VII are snapshots of the RENTAS MYR IFTS message display screens which the paying Participants are required to complete in order to transmit payment instructions to the receiving Participants 2 2 The labelled fields A to I in Appendices VI and VII are to assist Participants in understanding the MC PC and MC 400 transactions construct screen 2 3 Transaction Reference Number TRN Code 2 3 1 The TRN Code field labeled A indicates the type of payment e g INT99 is used to denote interest payments 2 3 2 All Participants shall distinguish third party transactions from inter bank transactions through the use of different TRN codes 2 3 3 The table below describes how the TRN codes IFT03 GOVO3 and IFTOO should be used MYR Third party TRN MYR Inter bank TRN Transaction IFTO3 GOV03 IFTOO Code Usage MYR third party MYR third party MYR payments between payments where the payments where the Participants for their own beneficiary or ordering beneficiary or ordering accounts e g clearing party are non RENTAS party are government Settlement trade finance Participants bodies transactions 2 3 4 For other TRN codes Participants shall use the TRN cod
72. es for the transactions as instructed by BNM s RENTAS Operations or MyClear Malaysian Electronic Clearing Page 69 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 3 0 Beneficiary Account Number Field 3 1 The Beneficiary account number field comprises a 4 character alphanumeric branch code followed by a 24 character alphanumeric account number 3 2 This field refers to the receiving party s account details 3 3 The Beneficiary account number field is a mandatory field and all Participants shall complete input the field for all third party transactions including over the counter customer transactions 3 4 Participants shall adhere to the following when completing the Beneficiary account number field i The branch number prefix shall be completed with 0001 if there is no branch code ii If there is a branch code and the code is less than four 4 digits the remaining digits shall be padded with trailing spaces iii The account number field shall be co
73. eserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix Il b Request For Extension of RENTAS MYR Settlement Daily Cut off Time Please use institution s letterhead To i Director Large Value Payments and Securities Services Division Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 10 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC Subject Request for Extension of RENTAS MYR Settlement Cut off Time Tuan Kindly extend the RENTAS cut off time for today ssssssssrssnesrsunsnnsnnunennnununnnnnnnennnnnnnnnnnnnennna from ddmmyyyy ET TE ET P M tO sess D M We hereby agree to pay the charges applicable for the extension The reason s for our request for extension is are as follows Thank you Authorised Signatory Authorised Signatory Official Stamp For MyClear Payments Services Use Onl Message received by Request allowed disallowed by Time Fees Payable Malaysian Electronic Clearing Page 85 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no
74. ettlement Accounts simultaneously against the transfer of securities from the seller to the buyer s Securities Accounts The conditions for final settlement across the books of BNM are as follows 10 4 1 Buyer has sufficient liquidity to cover the securities purchase 10 4 2 Seller has sufficient securities to deliver 10 4 3 Both buyer and seller are in good standing whereby its membership status is not suspended frozen or terminated 10 4 4 Value date of payment is a Business day 10 4 5 Securities transacted is valid transferable and has not matured Malaysian Electronic Clearing Page 30 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 10 4 6 Transaction submission time is within the MYR Settlement Business Hours specified in Clause 9 0 10 4 7 The transaction Message content and remittance information meets the requirements specified herein 10 5 Once all the above conditions are met the buyer s Settlement Account is debited seller s Settlement Account is credited buyer
75. formatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 28 0 BCM Arrangements in Relation to RENTAS Failure 28 1 Member Computer MC Failure 28 1 1 MC failure may happen due to system software hardware or communication line failure inadequate or failed internal processes human errors power outage or other unanticipated events 28 1 2 In the event of MC disruption Participants are required to assess immediately the severity of the failure Where appropriate Participants shall invoke the necessary recovery measures to resume normal operations Participants are reminded that recovery efforts undertaken to resume normal operations shall be within the recovery time objectives RTO specified in Clause 10 3 of the Participation and Operation Rules for Payments and Securities Services 28 1 3 Participants are required to inform MyClear immediately of any MC failure and other disruptions that are affecting their RENTAS system After the initial notification Participants are required to update MyClear every thirty 30 minutes on their recovery status and next action plan until the MC resumes normal operation 28 1 4 Participants shall decide whether to move to its recovering DR site within sixty
76. hole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Scheduled Time Actions 6 00 pm Start of MYR Evening Settlement Window and Activation of ACOFF 6 10 pm MYR Settlement for Interbank GIRO clearing 4 window By 8 30 pm MYR Settlement for Interbank GIRO clearing 5 window By 9 00 pm MYR Evening Settlement Window Cut off 9 3 MyClear may amend the MYR Settlement Business hours in Clause 9 2 if circumstances warrant such a change either temporarily or permanently 9 4 Participants are strongly advised to observe the cut off times for payments and settlements as delays may affect the liquidity of counterparties that are expecting these payments In the event of unavoidable delays the paying Participants shall communicate directly with the receiving Participants on the delay 9 5 To avoid possible transaction congestion during peak hours and the risk of failed Settlement Participants are encouraged to transmit their messages as early as possible 9 6 As stated in Clause 9 2 the MYR third party transaction cut off time for RENTAS MYR Settlement Participants is 4 00 pm Participants are allowed to impose an earlier cut off time for their customers but the cut off time f
77. ignature Signature Name Position Date Institution Stamp 3 For MyClear Internal Use Only Date Received Remarks Date Created Deleted User ID Name Group ID Malaysian Electronic Clearing Page 101 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes
78. iii Board resolution approving participation in RENTAS iv Memorandum and articles of association 6 1 6 Participants may be requested to submit documents on an annual basis to provide evidence that they are in compliance with the requirements outlined in Clause 6 1 3 6 1 7 MyClear may waive document submissions for entities that are regulated by BNM or entities under BNM s purview Malaysian Electronic Clearing Confidential Corporation Sdn Bhd 2015 Page 23 of 101 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 7 0 7 1 7 2 7 3 7 4 7 5 7 6 7 7 7 8 7 9 7 10 Admission of New Participant for MYR Settlement in RENTAS To participate in RENTAS MYR Settlement new Participants shall undertake the following Complete and submit the Confirmation of Participation form to MyClear as per Appendix V Form A Contact Person for the Daily Operation of RENTAS form as per Appendix VIII and RENTAS Authorised Signatories List form as per Appendix IX Please also refer to MyClear s contact details in Appendix Op
79. istration 21 1 All digital certificates of authorised officers who have access to RENTAS must first be registered in RENTAS iLINK This registration must also be performed upon certificate renewal at the end of the certificate validity period Procedures on the digital certificates registration in RENTAS iLINK are provided in the iLINK User Guide Malaysian Electronic Clearing Page 51 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 22 0 Digital Certificates 22 1 Participants shall liaise directly with the CAs to purchase renew Suspend or revoke their digital certificates Malaysian Electronic Clearing Page 52 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN
80. klist 00 ccccceeeeeeeeeeee cece eeeaeeeeaee scenes seaeeesaeseeeeseeeees 95 Appendix XII Request Form for RENTAS Test Environment ccccceceeeceeceeeeeeeeeeeeeaeeeeeeseaees 101 Malaysian Electronic Clearing Page 12 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Information Operational Procedures for MYR Settlement in RENTAS For Participants of RENTAS All rights reserved This document contains proprietary information which should not be produced in whole or in part nor released to third parties nor used for unauthorised purposes without the prior written agreement from Malaysian Electronic Clearing Corporation Sdn Bhd MyClear For Glossary of Terms please refer to the Participation and Operation Rules for Payments and Securities Services Malaysian Electronic Clearing Page 13 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances
81. l still be subjected to penalties imposed by MyClear for not repaying the MYR Intraday credit before the MYR Settlement Cut off time as well as penalties for extending the MYR Settlement Cut off time Detailed MyClear penalty charges are as listed in the Appendix III of the Participation and Operation Rules for Payment and Securities Services 19 11 If the MYR Settlement Cut off time has been extended Participants may repay their MYR Intraday credit up to the extended MYR Settlement Cut off time In the event the Participant fails to repay the Intraday credit by the extended MYR Settlement Cut off time the Participant will be subjected to both penalties for not repaying their Intraday credit as well as penalties for extension of the MYR Settlement Cut off time The duration of the extension will be calculated from the original MYR Settlement Cut off time of 6 00 pm Managing Unpaid Auto Collateralized Overnight Funding Facility ACOFF 19 12 Participants shall ensure that there are sufficient funds in their MYR Settlement Account to repay ACOFF through re purchase of the Eligible Securities that were sold to BNM on the previous Business day 19 13 Participants must settle all ACOFF borrowings by the Repayment of ACOFF time specified Malaysian Electronic Clearing Page 48 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under n
82. laysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 34 0 User Manuals 34 1 User manuals for RENTAS shall be provided by MyClear or its designated vendors Malaysian Electronic Clearing Page 66 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 35 0 RENTAS Participants Directory 35 1 Participants shall furnish their latest contact information for business continuity purposes by updating the Member Directory in RENTAS iLINK An up to date contact list is an essential component of BCP 35 2 Participants shall maintain an updated list of RENTAS Authorised Signatories using the form in Appendix IX and submit to MyClear immediately upon change
83. lectronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 2 0 Compensation on MYR Inter bank Failed Payments Participants shall be guided by the following procedures in regards to the compensation on failed MYR inter bank payments 2 1 Compensation Coverage 2 1 1 If for any reason a payment error causes the receiving Participant to breach any of BNM s regulatory requirements or MyClear s Rules and Operational Procedures and the receiving Participant is able to show proof that such non compliance was a direct result of the error from the paying Participant the interest or profit compensation shall include the payment of any penalty imposed by BNM and MyClear over and above the interest profit compensation computed based on the prescribed formula under Clause 2 2 of this Guideline 2 1 2 The paying Participant shall pay an administrative cost of RM200 00 to the receiving Participants to compensate for back valuation work or compensation work undertaken in rectifying payments 2 1 3 The administrative cost of RM200 00 shall not be charged by the receiving Participants for the act of merely
84. ler via Participants correspondent bank s account with the USD CHATS settlement bank in Hong Kong Malaysian Electronic Clearing Page 31 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 11 0 MYR Intraday Credit and Auto Collateralized Overnight Funding Facilities 11 1 Eligible Participants may draw on the following credit facilities offered by BNM 11 1 1 MYR Intraday Credit Facility 11 1 2 MYR Automatic Collateralized Overnight Funding Facility ACOFF MYR Intraday Credit Facility 11 2 The MYR Intraday credit facility in RENTAS is a credit line provided by BNM to the Participants between MYR Settlement Opening time until MYR Intraday Credit cut off to ensure that there is sufficient liquidity in RENTAS to effect Settlements on a timely basis BNM will determine which Participants are eligible for Intraday credit No Intraday credit facility is provided during MYR Evening Settlement Window 11 3 The MYR Intraday credit is granted in the form of collateralized borrowing in tranches of RM
85. m is as follows Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Large Value Payments and Securities Services Division Level 10 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur 2 2 Affected Participants are required to provide sufficient operational staff to invoke the activation of the backup MC system 3 0 Activation Procedure 3 1 Activity by Participants 3 1 1 Participants shall submit an official request form as per Appendix X for the activation of the back up facility signed by their Management 3 1 2 Participants have two 2 options of inputting transactions either by using the file upload facility or manual data entry 3 1 3 The Participants should reach MyClear s premise within one 1 hour from the approval time to activate the back up MC system at MyClear s premise 3 1 4 Participants are required to bring all relevant documents as stated in Appendix XI for the RENTAS BCP Live Run checklist Malaysian Electronic Clearing Page 82 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SE
86. matically triggered to fund Participants whose Settlement Account balances are not sufficient to cover their Interbank GIRO clearing positions The amount borrowed under ACOFF for a Participant is determined as follows Amount Borrowed Under ACOFF IBG SA Where i IBG Participant s Interbank GIRO clearing deficit amount ii SA Participant s MYR Settlement Account balance 11 22 The amount borrowed under ACOFF would be collateralized against Eligible Securities sold to BNM The valuation of Eligible Securities to determine the net price of Eligible Securities sold to BNM under ACOFF is as follows Net price 100 Margin x Clean Market Price of Eligible Securities 100 Malaysian Electronic Clearing Page 34 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 The applicable Margin and Clean Market Price are determined by BNM The Net price of Eligible Securities can be viewed in FAST Repayment of ACOFF for Participants Regulated Under the Financial Services Act 11 23 11 24 11 25 11 26 ACOFF can be fully or
87. ment Account balances and Securities Account balances accordingly 30 13 MyClear will conduct annual test runs on Mini RENTAS Participants are required to take part in the annual test runs Malaysian Electronic Clearing Page 62 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 31 0 e PKI Failure 31 1 RENTAS CHS is designed to withstand the complete failure of e PKI As such the failure of e PKI would largely be transparent to Participants All transactions would remain protected using a backup security solution which provides data authenticity integrity and non repudiation features thus ensuring the security of RENTAS at all times 31 2 To ensure seamless and automatic activation of the backup security solution Participants shall ensure that the e PKI configuration at their MC system is in accordance with MyClear s specifications Malaysian Electronic Clearing Page 63 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corpo
88. mpleted in numeric only and shall not contain any dashes or special symbols iv If the account number is less than 24 digits the remaining digits shall be padded with trailing spaces 3 5 Participants are advised to inform and educate their customers to ensure that they furnish the correct recipient account number when requesting for an MYR IFTS transaction 4 0 Beneficiary Name Field 4 1 The Beneficiary name field refers to the recipient of the payment and is a mandatory field 4 2 Participants shall key in the beneficiary account name correctly Participants are advised to inform and educate their customers to ensure that they furnish the correct recipient name when requesting for a MYR IFTS funds transfer 4 3 Participants shall ensure that the field is completed with the exact customer name s and not in abbreviated form 4 4 Participants shall not enter any other information other than the name of the beneficiary in this field Malaysian Electronic Clearing Page 70 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND
89. nd amount 11 12 For the avoidance of doubt and without prejudice to Clause 11 11 if a Participant fails to discharge its obligations under the MYR Intraday credit facility BNM reserves complete and full rights title and interest over the Identified Securities 11 13 While BNM does not currently charge any interest on MYR Intraday credit a transaction fee per MYR Intraday credit tranche is imposed Refer to Appendix III of the Participation and Operation Rules for Payment and Securities Services MYR Auto Collateralized Overnight Funding Facility ACOFF 11 14 ACOFF is an overnight credit line that BNM offers to eligible Participants who are unable to settle their Interbank GIRO clearing positions during the MYR Evening Settlement Window 11 15 ACOFF is granted through the outright sale of Eligible Securities from the eligible Participants K accounts to BNM Hence eligible Participants shall ensure that sufficient Eligible Securities are placed in their K accounts 11 16 Securities in K accounts would no longer be eligible as ACOFF collateral two 2 Business days before the securities Final Redemption Date or Early Redemption Date or Partial Redemption Date or Coupon Date Participants shall monitor the coupon and redemption Malaysian Electronic Clearing Page 33 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Unde
90. nt Accounts during repayment of ACOFF The interest is calculated as follows Interest Amount borrowed under ACOFF x ACOFF Rate x No of Days 365 Where ACOFF Rate Ceiling Rate currently at OPR 25 basis points No of Days Business day of ACOFF Repayment Business day of ACOFF Borrowing BNM shall determine the ACOFF rate and has a right to vary the rates according to market condition The ACOFF rate is currently set at the ceiling of the Overnight Policy Rate OPR Malaysian Electronic Clearing Page 35 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes Document Ref No 500 80 1 0000141 OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 11 27 For Conventional Banks that are unable to settle all their ACOFF borrowings by the Repayment of ACOFF time specified in clause 9 2 RENTAS will automatically draw on the Conventional Banks Intraday Credit to repay ACOFF Repayment of ACOFF for Participants Regulated Under the Islamic Financial Services Act 11 28 For Participants that are regulated under the Islamic Financial
91. nt is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix IV Request To Re sequence or Cancel Payment Instruction s In Priority Queue Please use institution s letterhead To Director Large Value Payments and Securities Services Division Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 10 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC Subject Request to Re sequence or Cancel Payment Instruction s in Priority Queue Tuan Kindly re sequence cancel the following transactions in our Priority today Queue No ISN No Currency Amount TR New Queue No Authorised Signatory Authorised Signatory Official Stamp For MyClear Payments Services Use Only Message received by Request allowed disallowed by Time Fees Payable Malaysian Electronic Clearing Page 87 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced
92. ntained with BNM Foreign Currency Transfer Settlement Account System MCT SAS This is a real time accounting module that posts debits and credits to foreign currency cash accounts across the books of OSls All Foreign Currency Settlement Accounts are maintained with OSls Scripless Securities Depository and Settlement System SSDS This module receives validates queues and processes securities sales repos free of payment transfers and pledges It then simultaneously initiates debit and credit to the Securities Account of the buyer and seller and synchronizes securities Settlement with cash Settlement in the IFTS module to achieve Delivery versus Payment DvP Payment vs Payment PvP Link to USD CHATS PvP is a cross border link between the RENTAS system and the USD CHATS system in Hong Kong This link provides real time Settlement for foreign exchange FX transactions involving US Dollars USD and MYR whereby USD settlement takes place in USD CHATS while MYR settlement takes place in RENTAS RENTAS Euroclear Link This is a cross border link between RENTAS and Euroclear This link allows RENTAS to offer securities Settlement and custody services through the Euroclear Malaysian Electronic Clearing Page 18 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or par
93. nterest income arising from the errors made by the paying Participant While it is the responsibility of the paying Participant to make payments the receiving Participant may also advise the paying Participant if any payments expected are not paid in due time 1 3 MYR Inter bank Settlements are normally made for the following reasons 1 3 1 From the paying Participant s own account and such payments are made for the credit of the receiving Participant as beneficiary e g Settlement of Foreign Exchange or Money Market transactions 1 3 2 On behalf of the paying Participant s customer and such payments are made for the credit of the receiving Participant as beneficiary e g overdraft or loan repayment financing payment 1 3 3 From the paying Participants own account and such payments are made for the credit of the receiving Participant s customer and 1 3 4 On behalf of the paying Participant s customer and such payments are made for the credit of the receiving Participant s customer 1 4 MYR Inter bank failed Settlements are defined as 1 4 1 Payments that do not meet the MYR Settlement Cut off time for payments and settlements set out in the MYR Settlement Business hours stated in Clause 9 2 in the main section of this Operational Procedure 1 4 2 Mis sent payments and 1 4 3 Non payment Malaysian Electronic Clearing Page 75 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian E
94. nts for those outstanding transactions i Source files such as Outgoing Batch Interface file IFTS or SSTS ii Documents such as all the documents related to the outstanding transaction s information that going to construct or send 5 For Participants Using MC PC Platform Bring along the Production database backup disc The backup disc will be used to restore tables into BNM BCP The latest database copy shall be obtained either by i Performing an ad hoc backup at the live MC or ii Retrieving the previous Business day s end of day full database backup file The above is only applicable for Participants using MS SQL 7 0 or MS SQL 2000 database software For Participants with MS SQL 2005 databases step 6 below is applicable 6 For Participants Using MC 400 and Participants with MS SQL 2005 databases The RENTAS administrator has to be present to manually configure user information in RENTAS user profile Malaysian Electronic Clearing Page 95 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500
95. o circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 in Clause 9 2 If a Participant is unable to do so the Participant may draw on their Intraday Credit to repay ACOFF resulting in a rollover of the ACOFF borrowing from the previous Business day into an Intraday credit Such rollover does not constitute good liquidity management and repeated rollovers may result in imposition of General Non Compliance Penalties 2 Except for Islamic Banks who are allowed 90 minutes from the Repayment of ACOFF time to conclude a repurchase transaction with BNM at a mutually acceptable price Malaysian Electronic Clearing Page 49 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 20 0 e PKI Requirements 20 1 RENTAS requires it
96. of Operational Procedures for Securities Services 14 2 Upon confirmation by the buyer the transaction will be settled on a DvP basis 14 3 SSDS transactions which are pending for Settlement such as forward dated transactions before their value date may be cancelled by the Participant who initiated the transaction subjected to the confirmation of their counterparty 14 4 On the Settlement date sales and transfers that are pending due to insufficient securities cannot be cancelled by Participants once the transaction is confirmed by the purchaser or transferee These transactions will automatically be cancelled by the system at MYR Settlement Cut off Repo transactions both 1 leg and 2 leg transactions that are pending due to insufficient repo collateral may be cancelled by either party to the transaction subjected to the confirmation of the counterparty 14 5 Specified RENTAS Securities 14 5 1 RENTAS CHS processes all securities transactions on a real time basis during MYR Settlement Business hours Forward dated transactions received will be stored in the RENTAS CHS database and RENTAS CHS will process such transactions only on their value date 14 5 2 If the value date of a payment falls on a Business day that is subsequently declared a public holiday the RENTAS CHS shall defer processing such transactions to the next Business day 14 5 3 Although RENTAS CHS automatically adjusts the value date of transactions to
97. online and real time basis Participants may perform online queries on the status of their foreign currency transactions and account balances via RENTAS iLINK Malaysian Electronic Clearing Page 17 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 5 0 System Components 5 1 RENTAS Central Host System RENTAS CHS The RENTAS CHS consists of the following major modules 5 1 1 5 1 4 Inter bank Funds Transfer System IFTS This module receives validates queues and processes fund transfer transactions and cash Settlements It then relays the transactions to the MYR Settlement Account System MYR SAS or the Foreign Currency Settlement Account System MCT SAS where debit and credit transactions are posted to the Participants MYR Settlement Account or foreign Currency Settlement Account respectively MYR Settlement Account System MYR SAS This is a real time accounting module that posts debits and credits to MYR cash accounts across the books of BNM All MYR Settlement Accounts are mai
98. onment by submitting the form in Appendix XII at least three 3 Business days prior to the scheduled testing 33 3 The value date of the exercise shall default to the current value date unless the Participant requests a different value date Requests for a value date other than the current date will only be entertained on a case by case basis 33 4 Fees imposed on Participants for use of the test environment is as stated in Appendix III of the Participation and Operation Rules for Payment and Securities The fees will be levied based on the number of days of the planned exercise Participants will not be reimbursed if the planned exercise is not conducted If a request is made less than three 3 Business days prior to the test the request will be deemed as an unplanned testing exercise for billing purposes 33 5 Participants are not allowed to use the RENTAS CHS testing environment during RENTAS CHS live runs weekends public holidays and after office hours 33 6 MyClear may also conduct RENTAS CHS test exercises and reserves the rights to make the testing mandatory for some or all Participants based on the objectives of the test exercise 33 7 Inthe testing where the test scripts are to be provided by MyClear the test scripts will be made available at least one 1 week before the actual exercise date Malaysian Electronic Clearing Page 65 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Ma
99. or customers should be no earlier than 3 00 pm 9 7 Availability of Funds for Beneficiary 9 7 1 All receiving Participants shall make funds available to the beneficiary customers within 30 minutes of receiving a credit confirmation advice from RENTAS CHS 9 7 2 All paying Participants shall transmit payment instructions to RENTAS CHS within 30 minutes of receiving an instruction from the paying customers 9 8 MYR Intraday Money Market Deals 9 8 1 The lender investor must pay the borrower investee within thirty 30 minutes from the time the deal is done 2 MyClear may vary the MYR Settlement for Interbank GIRO clearing 5 window time depending on when the Interbank GIRO clearing positions are available 3 MyClear may vary the Evening Settlement Window Cut off so that it occurs immediately after the MYR Settlement for Interbank GIRO clearing 5 window time Malaysian Electronic Clearing Page 28 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 9 9 Same day value for
100. orporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Document Ref No 500 80 1 0000141 Version 2 1 Version Date of Summary of Change Updated By No Update 8 Jalan Kerinchi 59200 Kuala Lumpur Appendix V Form A amp B Strengthen procedures for disclosing information to meet requirements for permitted disclosures under Section 134 Schedule 11 Clause 1 of the Financial Services Act FSA 1 7 06 Dec 2013 Table 9 2 MyClear To incorporate 2 Interbank GIRO settlement at 12 00 noon in addition to existing settlement at 4 20 pm Clause 10 2 The changes are intended to include IFTS payments processed by Mini RENTAS in the conditions for finality Clause 10 4 The changes are intended to include SSDS sales and repos processed by Mini RENTAS in the conditions for finality Clause 10 6 The changes are intended to include free of payment transactions processed by Mini RENTAS in the conditions for finality Clause 14 1 Delete 30 minutes deal confirmation and make reference to Operational Procedures for Securities Services Footnote to Clause 27 3 Provide clarity to requirement to cover all BC
101. partially repaid within a MYR Settlement Window For Participants Regulated Under the Financial Services Act Conventional Banks who borrowed under ACOFF but subsequently receive incoming funds from surplus Interbank GIRO clearing positions in the same MYR Settlement Window RENTAS will automatically debit the Conventional Banks MYR Settlement Accounts to repay ACOFF by buying back the securities which were previously sold to BNM ACOFF borrowings that are repaid within the same MYR Evening Window is not subjected to any interest Only the remaining overnight ACOFF amount will be subjected to the interest rate specified in the clause 11 26 On the next Business day Conventional Banks must settle all ACOFF borrowings by the Repayment of ACOFF time specified in Clause 9 2 Conventional Banks shall ensure that their MYR Settlement Accounts have sufficient funds to re pay ACOFF Conventional Banks repayment of ACOFF will be triggered automatically at the time specified in Clause 9 2 Conventional Banks re pay ACOFF borrowings by automatically repurchasing the Identified Securities that were sold to BNM during MYR Evening Settlement Window on the previous Business day Repurchases of Identified Securities to re pay ACOFF would occur at net prices that are identical to the net prices used when the Participants borrowed from ACOFF the previous Business day ACOFF interest will be automatically debited from the Conventional Banks MYR Settleme
102. queued transactions or ii Cancelling the queued transactions 13 3 2 Participants may also make online real time queries on their outgoing and incoming normal payment queues via MC and RENTAS iLINK 13 4 Priority Queue Management 13 4 1 Only MyClear is allowed to re order or cancel transactions in the priority queue 13 4 2 Participants shall submit a form as per Appendix IV by facsimile to instruct MyClear to re sequence or cancel transactions in the priority queue should the need arise 13 4 3 Although Participants are not allowed to manage transactions in the priority queue Participants may make online real time queries on their outgoing and incoming MYR priority payment queues via MC and RENTAS iLINK 13 5 Liquidity Optimization Settlement Facility 13 5 1 Liquidity Optimization Settlement Facility LOSF is the process of combining incoming or outgoing MYR payments in order to achieve a reduced net obligation 13 5 2 The purpose of LOSF is to optimize liquidity Through LOSF Participants are able to offset their outgoing MYR payments against incoming receipts thereby reducing their liquidity needs Malaysian Electronic Clearing Page 38 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external pu
103. r no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 profile of securities in their K accounts to ensure that there is no shortfall in Eligible Securities due to upcoming coupon payments and redemptions 11 17 BNM will exercise its sole discretion in selecting and identifying the Eligible Securities Identified Securities in Participants K accounts that BNM would purchase under ACOFF at any given of time 11 18 BNM has the absolute right to transfer the Identified Securities from the Participants K accounts to BNM s account through SSDS sale transactions when Participants require funding under ACOFF 11 19 All rights title and interest in and to any of the Identified Securities shall vest in BNM free and clear of any liens claims charges or encumbrances or any other interest of the Participants or of any third party 11 20 Nothing in this clause is intended to create or does create in favour of either party any mortgage charge lien pledge encumbrance or other security interest in the Identified Securities 11 21 When Interbank GIRO clearing positions are posted into RENTAS during the MYR Evening Settlement Window ACOFF will be auto
104. r the request of extension of PvP Link Cut off time preferably within 30 minutes of the verbal request for extension 15 5 MyClear will not grant an extension of PvP Link Cut off time exceeding MYR Settlement Cut off time except in circumstances where MyClear deems the extension necessary to avoid systemic risks to RENTAS participants 15 6 MyClear will inform the industry through RENTAS broadcast message in the event of any extension of PvP Link Cut off time 15 7 Participants requesting a PvP Link Cut off extension grants MyClear the right to publicly disclose all information pertaining to the Participants PvP Link Cut off extension request Malaysian Electronic Clearing Page 42 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 16 0 Request for Extension of MYR Settlement Cut off Time 16 1 Participants are required to observe the MYR Settlement Cut off schedule at all times to ensure industry wide operational efficiency 16 2 However MyClear may in exceptional circumstances con
105. ration Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 32 0 Network Connectivity Failure 32 1 In the event RENTAS secure private network fails MyClear offers back up ISDN connectivity to RENTAS via different third party provider 32 2 Participants who have subscribed to the backup ISDN connectivity would be able to resume transmission of transactions to RENTAS by switching to the ISDN connectivity Malaysian Electronic Clearing Page 64 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 33 0 Testing Procedure 33 1 Participants are allowed to use MyClear s RENTAS CHS test environment if the need arises 33 2 Participants shall submit their request to use the test envir
106. rposes Document Ref No 500 80 1 0000141 OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 13 5 3 RENTAS provides an optional multilateral LOSF settlement track where Participants may voluntarily submit MYR IFTS transactions that are less time critical for LOSF settlement 13 5 4 LOSF settlement is only available for MYR IFTS transactions There is no LOSF settlement for SSDS and PvP transactions 13 5 5 Participants may designate MYR IFTS transactions for LOSF settlement by entering a specified Transaction Reference Number TRN code into the transactions 13 5 6 Participants may submit same day LOSF settlement transactions to RENTAS at any time between 9 00 am to 4 00 pm RENTAS will perform LOSF in specified settlement time intervals After 4 00 pm LOSF transactions submitted for same day value will be reverted to gross settlement immediately 13 5 7 LOSF transactions submitted between the pre determined LOSF settlements time will be queued until the next available LOSF settlement time slot 13 5 8 Participants may opt to remove their transactions from the LOSF settlement queue Transactions removed from the LOSF settlement queue will automatically be submitted for gross settlement 13 5 9 If a LOSF settlement batch cannot be settled because one or more Participants do no
107. s Malaysian Electronic Clearing Page 67 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 36 0 Customer Service 36 1 Participants may contact MyClear with regards to any RENTAS issue The contact details for MyClear s and BNM s RENTAS MC operations are as per Appendix The contact information is also available in the Member Directory in RENTAS iLINK system Malaysian Electronic Clearing Page 68 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 GUIDELINES Guideline Guidelines on MYR Third Party Payments 1 0 Introduction 1 1 These guidelin
108. s damages and expenses without recourse to litigation if the receiving Participants deems fit The paying Participants shall also pay to the receiving Participants all costs and expenses incurred in enforcing this Indemnity obligation and in taking legal advice in connection with this including all legal fees and disbursements 4 0 Validity of Compensation Claims 4 1 A compensation claim is deemed valid only if it is initiated within sixty 60 calendar days from the value of the transaction Malaysian Electronic Clearing Page 81 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Guideline Ill Procedures for Activation of MC Back Up System at MyClear s Premises 1 0 Introduction 1 1 MyClear implemented the MC backup facility at its premises to ensure that risk arising from the failure of a Participant s MC system is adequately addressed The back up facility is intended as a last resort back up system for affected Participants 2 0 Location 2 1 The location of the back up MC syste
109. s Participants to deploy digital certificates issued by Licensed Certification Authority CA to perform the necessary e PKI functions in RENTAS Currently there are two CAs namely Digicert Sdn Bhd and MSC Trustgate Sdn Bhd 20 2 These digital certificates can be purchased and registered for individuals or organisations based on the Participants internal controls and internal procedures 20 3 Participants are encouraged to have certificates from both CAs to avoid reliance on a single CA 20 4 Participants are also required to have a token based digital certificate for its e PKI functions to activate the MC backup facility at MyClear s premise 20 5 Participants are responsible for monitoring the expiry dates of their respective digital certificates They shall renew the certificates at least one 1 month prior to the expiry date of the certificates Malaysian Electronic Clearing Page 50 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 21 0 RENTAS iLINK User Identification ID Reg
110. se 5 1 Added Clause 5 1 6 on the definition of RENTAS Euroclear Link Clause 8 0 and 8 1 Added the words or Cross Border Securities Custody Services Participants into the sentence Appendix V Form A and Form B Added an additional option to subscribe to Cross Border Securities Custody Services MyClear 1 4 7 May 2012 Clause 6 1 2 For MYR a Settlement Services Rewording of table row to suit future situation in the event of additional services subject to BNM approval Clause 6 1 3 iv Added new requirement for admission to RENTAS Clause 10 4 until 10 8 Added new clause on finality of settlement for SSDS transactions Clause 13 5 6 Revised LOSF operating hours from 8 00am to 2 30pm to 9 00am to 4 00pm Clause 30 0 MyClear Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 5 of 101 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Version No Date of Update Summary of Change Updated By Added new procedures for Mini RE
111. sian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix II a Request For Extension of RENTAS PvP Link Cut off Time Please use institution s letterhead To Director Large Value Payments and Securities Services Division Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 10 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC Subject Request for Extension of RENTAS PvP Link Cut off Time Tuan Kindly extend the RENTAS PvP Link Cut off time for today eceeeeeeeeee ees from dammyyyy KEE P M tO sess p m We hereby agree to pay the charges applicable for the extension The reason s for our request for extension is are as follows Thank you Authorised Signatory Authorised Signatory Official Stamp For MyClear Payments Services Use Only Message received by Request allowed disallowed by Time Fees Payable Malaysian Electronic Clearing Page 84 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights r
112. sider extending the MYR Settlement Cut off time when 16 2 1 Participants are unable to settle their respective MYR Intraday credit 16 2 2 The extension of time is requested by BNM under exceptional circumstances and 16 2 3 The extension of time is necessary to avoid Settlement failures that pose a systemic risk to the system 16 3 Any requests for extension shall be made to MyClear via telephone by contacting the Payment Services officers listed in Appendix at least fifteen 15 minutes before the scheduled MYR Settlement Cut off time MyClear may reject any request made less than fifteen 15 minutes before the MYR Settlement Cut off time in such circumstances MyClear shall not be held responsible for any losses incurred by the Participants 16 4 Participants shall fax the duly completed form as specified in Appendix II b for the request of extension of Cut off time preferably within 30 minutes of the verbal request for extension 16 5 In the interest of operational efficiency MyClear may act upon verbal requests for extension of Cut off time by the Participants 16 6 MyClear will inform the industry through RENTAS broadcast messages in the event of any extension of Cut off time 16 7 Participants requesting a cut off extension grants MyClear the right to publicly disclose all information pertaining to the Participants cut off extension request 16 8 MyClear will not grant an extension exceeding two 2 ho
113. sufficient details in the payment instruction the procedure would be as follows i The receiving Participants shall return the funds to the paying Bank immediately ii The paying Participants may however request the receiving Participants to hold back the funds pending rectification iii The receiving Participants may entertain this request at its discretion and retain the funds provided the paying Participants send a Credit Notification CRN immediately to the receiving Participants with the notation as stated in Clause 3 0 iv To rectify the payment instructions the paying Participants must send another CRN to the receiving Participants with the notation as stated in Clause 3 0 Malaysian Electronic Clearing Page 80 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 3 0 Indemnity 3 1 In all cases where the receiving Participants return rectify or withhold payments to or to the order of the paying Participants pursuant to the request of the paying Participants under Clauses 2 2 4 2 and
114. sum shall be returned by the receiving Participants under the following conditions i The paying Participant shall confirm details of the mis sent payment by transmitting a RENTAS credit notification CRN to the receiving Participants Malaysian Electronic Clearing Corporation Sdn Bhd 2015 Page 78 of 101 Confidential This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 ii The paying Participant shall include date and details of the mis sent payment in their CRN iii The paying Participant shall forward to the receiving Participants copies of the RENTAS completion advices or its equivalent for all the mis sent payment via facsimile e mail or any other means iv The paying Participant shall provide an indemnity to the receiving Participants v The receiving participant may return the funds without beneficiary s consent if the sum has not been credited to the beneficiary s account vi If the sum has been credited the receiving Participants shall only return if Both the receiving Participant and the paying Participant are fully
115. system and the details are given as follow Institution Name Name of the contact person Specimen signature of contact person Designation Department Contact address Contact telephone number Email address sssssseetetttttnnssssnsesencenettetnnnssnsneeneenettemunnsonsneeneenettmasnsonsreeeeetetissssororeeeeanenissnsoroneeerenetimanssonenees Yours sincerely Signature and Institution Official Stamp Name Designation Malaysian Electronic Clearing Page 92 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix IX RENTAS Authorised Signatories List Please use institution s letterhead Date To i Managing Director Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 12 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC RENTAS Digit Code Subject RENTAS Authorised Signatories List Tuan We submit herewith our Authorised Signatories List for all RENTAS matters referring to the member institu
116. t reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 System and serves as the basis for Cross Border Securities Custody Services in RENTAS CSCS 5 2 Member s Computer MC 5 2 1 RENTAS Participants use MC to enter transmit and receive MYR funds and securities transactions MC runs on two 2 technology platforms namely IBM AS400 MC 400 and Windows MC PC 5 3 Network 5 3 1 The Members Computers connect to RENTAS CHS via a secure private communication network provided by a third party provider determined by MyClear 5 4 Enterprise Public Key Infrastructure e PKI 5 4 1 Enterprise Public Key Infrastructure e PKI provides data authenticity integrity and non repudiation features thus ensuring the security of RENTAS e PKI is an enterprise security system owned and operated by BNM Malaysian Electronic Clearing Page 19 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN
117. t have sufficient funds RENTAS will make three attempts to perform the LOSF settlement after a specified time interval After three attempts all transactions in the failed LOSF settlement batch will be reverted to gross settlement 13 5 10 Participants may also submit forward dated transactions for LOSF settlement Forward dated transactions will be queued until the first LOSF settlement pre determined time slot on the settlement date 13 5 11 Participants are able to view the status of their LOSF settlement transactions via RENTAS iLINK 14 0 SSDS Processing 14 1 While the responsibility to initiate SSDS sales repos and transfers lie with the seller or transferor the buyer or transferee has a responsibility to promptly confirm the sales or Malaysian Electronic Clearing Page 39 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 transfer to allow the Settlement to complete The purchaser or transferee shall confirm the sales or transfer within the deadline stipulated in clause 67 1 and 67 2
118. te RENTAS transactions for transmission to RENTAS Malaysian Electronic Clearing Confidential Corporation Sdn Bhd 2015 Page 57 of 101 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Document Ref No 500 80 1 0000141 Version 2 1 Scenario Operational Location MC MC Server Network Participants Internal Workstation Connectivity Systems 5 DR DR DR DR 6 Production Production Site Production Site DR Site 7 Production Production Site DR DR Site 8 Production DR DR DR Site 9 Production DR Production Site DR Site 10 Production DR DR Production Site Site 11 Production DR Production Site Production Site Site 12 Production Production Site Production Site Production Site Site Backup Server 13 DR Production Site Production Site Production Site Backup Server 14 DR Production Site DR Production Site Backup Server 15 DR Production Site DR DR Backup Server Participants shall attempt to cover all possible scenarios in their DR testing and should not confine their BCP and DR exercises to a limited number of scenarios All s
119. this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR MALAYSIAN RINGGIT MYR SETTLEMENT IN THE REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Document Ref No 500 80 1 0000141 Version No Date of Update Summary of Change Updated By Clause 11 0 e Added the word MYR into Intraday credit facility Clause 15 0 e New process for the Request for Extension of PvP Settlement Cut off Time Clause 16 0 e Replaced Request for Extension of Cut off Time with Request for Extension of MYR Settlement Cut off Time e Amendment to the duration of the requirement to send the form via fax to MyClear for the request of extension Amendment from within five 5 minutes to within thirty 30 minutes Clause 19 0 e Amendment to the last resort mechanism to address situations where intraday credit cannot be redeemed at MYR Settlement Cut off time Clause 29 0 Clause 30 0 and Clause 31 0 e Improved to provide clarity on how abnormal situations such as RENTAS CHS e PKI and network connectivity failure would be managed Guideline 1 e Added the word MYR into the Guidelines on Third Party Payments Appendix I MyClear Payment Services e Updated list of MyClear officers and their contact information Appendix Il e Replaced App
120. tion This list shall take effect on Name Designation Specimen Signature Yours sincerely Signature and institution stamp Name sadi an patia a a aaa liaa Designation sresreccnarnuimarairani aia This signatories list must be authorised by the person who has the Power of Attorney PA or based on the Board of Directors resolution Malaysian Electronic Clearing Page 93 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 Appendix X Activation of Member Computer Back up System at MyClear Please use institution s letterhead To Director Large Value Payments and Securities Services Division Malaysian Electronic Clearing Corporation Sdn Bhd MyClear Level 12 Tower 2A Avenue 5 Bangsar South 8 Jalan Kerinchi 59200 Kuala Lumpur From RENTAS BIC Subject Activation of MC Back up System at MyClear Tuan With reference to the above we would like to request for activation of MC MCPC MC400 dd mm yyyy The reason s for our request of
121. tion effectively It shall contain information intended for use by the RENTAS MYR Settlement Participants 10 2 Participants may enter special processing instructions or abbreviations agreed amongst the Participants such as three alphabet 3 alpha abbreviation conventions such as SCA Same Clearing Area or FMR Form R required or any other information that the sending member would like to communicate to the receiving member 10 3 Participants shall not use Please Avoid Duplication PAD in the Member to Member field when making a RENTAS payment 11 0 Guarantee of Correctness 11 1 Participants should understand that the standardization of contents for key fields does not guarantee that the contents of all transactions are correct Participants are advised to conduct their own risk assessment and impose their own checks and controls to detect incorrect content in transactions 11 For purpose of compliance with Anti Money Laundering and Anti Terrorism Financing Act 2001 AMLA requirements Malaysian Electronic Clearing Page 73 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 50
122. ts shall not enter information other than the name of the sender in the name field Malaysian Electronic Clearing Page 72 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 8 6 For non third party transactions this field shall be completed with the correct RENTAS Member BIC Code e g BNMAMYKL for BNM instead of terms such as ourselves or selves 9 0 Address Field by order of 9 1 The Address by order of field refers to the address information of the sender and is not a mandatory field 9 2 Although it is not a mandatory field in RENTAS MC Participants are required to fill in the correct address of the sender No other information shall be included in this field 9 3 MyClear shall assume that all relevant information have been captured correctly and verified by the Participants 10 0 Member to Member Information 10 1 The Member to Member Information field shall be used to provide information required for the counter party to process the payment instruc
123. ttlement Services or Cross Border Securities Custody Services who have received approval from MyClear to participate in MYR Settlement Services shall open a MYR Settlement Account directly with Currency Management and Operation Department of BNM 8 2 The Participants shall complete and submit the Confirmation of Participation in Additional Services form to MyClear as per Appendix V Form B two 2 weeks before the actual implementation date of the Participants MYR Settlement operations 8 3 In addition the Participants shall undertake the tasks mentioned in 8 1 and Clauses 7 5 to 7 11 Malaysian Electronic Clearing Page 26 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 9 0 MYR Settlement Business Hours 9 1 The Business hours for MYR Settlement in RENTAS is from 8 00 am to 9 00 pm on all Business days 9 2 The detailed schedules for MYR Settlement activities in RENTAS are as provided in the table below S
124. uired to submit an IR to MyClear should there be any incident that materially impacts their RENTAS operations including but not limited to operational disruptions of more than 15 minutes major system failures or downtime degradation in system performance security breaches and fraud as well as failures to settle obligations Malaysian Electronic Clearing Page 45 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 18 0 Compensation on Inter Bank Failed Settlements 18 1 Participants are encouraged to resolve any claims for compensation arising from failed Settlements amicably 18 2 The Guidelines for Compensation on Inter bank Failed Settlements as specified in Guideline Il provide a mechanism to compute compensation in situations of Settlement failure or delayed Settlement Malaysian Electronic Clearing Page 46 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this
125. urs except in circumstances where MyClear deems the extension necessary to avoid systemic risks to RENTAS participants 16 9 Participants who have completed all transactions repaid all outstanding MYR Intraday credit and settled all obligations to BNM may close their operations at the scheduled MYR Settlement Cut off time of 6 00 pm even if there is a cut off extension Malaysian Electronic Clearing Page 43 of 101 Confidential Corporation Sdn Bhd 2015 This document is prepared by Malaysian Electronic Clearing Corporation Sdn Bhd All rights reserved Under no circumstances can this document be reproduced in whole or part reformatted or altered in any way for either internal or external purposes OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 16 10 Participants whose MYR Settlement Cut off extension request is granted will be subjected to penalties as specified in Appendix III of the Participation and Operation Rules for Payment and Securities 16 11 Participants may not free ride on another Participant s MYR Settlement Cut off extension request If a Participant requests a MYR Settlement Cut off extension and a second Participant subsequently requests for a further extension beyond the first request both Participants will be subjected to penalties for cut off extension 16
126. way for either internal or external purposes Document Ref No 500 80 1 0000141 OPERATIONAL PROCEDURES FOR Document Ref No MALAYSIAN RINGGIT MYR SETTLEMENT IN THE 500 80 1 0000141 REAL TIME ELECTRONIC TRANSFER OF FUNDS AND SECURITIES SYSTEM RENTAS Version 2 1 R Comprise of Reserve Cost Administration Cost and Penalty The rate is currently set at 0 5 and subject to change Day Delay will be deemed as one day for interest calculation 2 2 3 Value Date Adjustment Use of Funds Compensation Claim Formula 2 2 3 1 For value date adjustment of the payment and the use of funds the compensation claim will be paid according to the following formula Amount x OPR R x Day 36500 where Amount Amount due for the Settlement of the MYR transaction OPR Overnight Policy Rate as published by BNM R Comprise of Reserve Cost Administration Cost and Penalty The rate is currently set at 0 5 and subject to change Day Delay will be deemed as one day for interest calculation 2 2 4 Mis sent Payment 2 2 4 1 2 2 4 2 A paying Participant may request the receiving Participant to return funds under the following circumstances i If the payment should not have been sent ii The payment was directed to a wrong Participant and iii A duplicate payment overpayment has been effected If the paying Participants notifies the receiving Participants of a mis sent payment the principal

Operational Procedures for Malaysian Ringgit Settlement

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