Malaysia’s Maybank Investment Bank (Maybank IB) has partnered with New York-listed Broadridge Financial Solutions to launch a Shariah compliant securities borrowing and lending (SBL) offering.
The new product, launched in August, is underpinned by Broadridge’s securities finance and collateral management solution. The SBL platform targets institutional investors, but Maybank IB expects to open the offering to retail investors next year, becoming the first in Malaysia to offer Shariah compliant SBL to that segment, confirmed Tengku Ariff Azhar, the COO of Maybank IB.
“This partnership enabled us to swiftly bring this product to market while adhering to the regulatory framework provided by Bursa Malaysia,” Tengku Ariff said.
The offering utilizes proprietary front-to-back platform with the ability to interface with downstream systems, enabling automation and straight-through processing. Broadbridge noted that the platform is scalable and can be expanded into other regions. Maybank IB is also present in Singapore, Hong Kong, Thailand, Indonesia, the Philippines, India, Vietnam, the UK and the US.
According to Darren Crowther, the head of securities finance and collateral management at Broadridge, the offering encompasses multi-custody principal and agency trading models.
“In today’s complex global markets, businesses require solutions that enable rapid startup, capture growth opportunities, integrate seamlessly with internal and external systems, meet regulatory obligations, and streamline operations,” commented Darren. Broadridge is a fintech company turning over US$6 billion in revenues last year.
Maybank IB was onboarded as an approved supplier and user under Bursa Malaysia’s Islamic Securities Selling and Buying – Negotiated Transaction Framework in August last year. This allows the bank to facilitate client-driven hedging and risk management activities that comply with Shariah principles.