Netting of Financial Agreements Act 2015 · s 5

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s 5

(1)

For the purposes of this Act, a qualified financial transaction shall involve—

(a)

over-the-counter derivatives;

(b)

repurchase, reverse repurchase, buy-sell back in respect of securities; or

WJW004137 BI.indd 7 3/6/15 4:26:58 PM

(c)

a lending or borrowing of unlisted debt securities under the Real Time Electronic Transfer of Funds and Securities

System established under subsection 44(1) of the Central

Bank of Malaysia Act 2009 [Act 701].

(2)

In this section, “derivative” means any agreement including an option, a swap, futures or forward contract, whose market price, value, or delivery or payment obligation is derived from, referenced to or based on, but not limited to, securities, commodities, assets, rates (including interest rates, profit rates or exchange rates) or indices and shall include a derivative which is in accordance with

Shariah.