Netting of Financial Agreements Act 2015 · Updated to 6 Mar 2015 · Part II · Netting Provision
Section 5
Official textFrom Laws of Malaysia Online, unchanged
For the purposes of this Act, a qualified financial transaction shall involve—
qualified financial transaction
“qualified financial transaction” means the transaction referred to in section 5 and includes any other transaction prescribed by the Minister to be a qualified financial transaction under paragraph 6(1)(c);
over-the-counter derivatives;
repurchase, reverse repurchase, buy-sell back in respect of securities; or
securities
“securities” includes securities which are in accordance with Shariah. Netting of Financial Agreements 7
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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].
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.
Terms defined in s 2
qualified financial transaction
Defined · s 2“qualified financial transaction” means the transaction referred to in section 5 and includes any other transaction prescribed by the Minister to be a qualified financial transaction under paragraph 6(1)(c);
securities
Defined · s 2“securities” includes securities which are in accordance with Shariah. Netting of Financial Agreements 7