Bursa Malaysia Derivatives Clearing Bhd (BMDC) is an approved Clearing Houses under Capital Market Services Act (BMSA) and provides clearing and settlement services for the derivatives market. BMDC clears and settles futures and options contracts executed on Bursa Malaysia Derivatives Bhd.
BMDC provides, oeprates and maintains a clearing house for the derivatives exchange.
Settlement of market contracts include:
1. Commodity derivatives
2. Equities derivatives
3. Financial derivatives
There are two (2) types of Clearing Participants registered with BMDC:-
- General Clearing Participant (GCP)
A clearing participant that can clear derivatives trades for proprietary trading and on behalf of their clients.
- Direct Clearing Participants (DCP)
A clearing participant that can only clear their own proprietary derivatives trades.
BMDC received trades data online and on a real time basis from the exchange and conducts all post trades transactions on the clearing and settlement system.
The end-of-day ("EOD") processing include:
- Determination of settlement prices;
- Performance bond requirements on open positions;
- Valuation of collateral lodged;
- Cash position ; and
- Settlement variation.
The clearing and settlement cycle is completed when funds are collected from Clearing Participants on cash shortages.