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Migration to Kuala Lumpur USD/MYR Reference Rate

Ref No : 06/16/04 15 Jun 2016 Embargo : For immediate release    


Bank Negara Malaysia and Financial Markets Association of Malaysia (FMA or PPKM1) are pleased to announce the following as part of the effort to adopt global best practices for the domestic financial market:

  1. Adoption of new methodology in the USD/MYR Spot Fixing (PPKM-MYR) based on market transaction data, effective from 18 July 2016; and
  2. An expanded official closing hour for onshore ringgit market from 5 p.m. to 6 p.m., effective 18 July 2016. This will give businesses additional time to complete their foreign exchange transactions. Nevertheless, the onshore market participants can continue to transact after the official closing hour.

Under the new methodology, the reference rate will be known as Kuala Lumpur USD/MYR Reference Rate.  It will be published daily at 3:30 p.m. and is computed based on weighted average volume of the interbank USD/MYR FX spot rate transacted by the domestic financial institutions between 8:00 a.m. to 3:00 p.m. The market transaction data is sourced from online reporting by domestic financial institutions to Bank Negara Malaysia. The new methodology is more transparent and better reflects underlying trades during the day.

The Kuala Lumpur USD/MYR Reference Rate will be published under a parallel trial on Reuters page KLMYRREF starting from 20 June 2016 and will be effective only from   18 July 2016. This parallel period allows for the market transition process. On the effective date, the Kuala Lumpur USD/MYR Reference Rate will assume the current PPKM-MYR page on MYRFIX02 and continue thereafter. Bank Negara Malaysia and FMA expect a smooth migration without any disruptions.

“These enhancements in the Malaysian financial market infrastructure follow from the ongoing collaboration with the FMA, and are among the first few initiatives discussed at the Financial Market Committee, an inclusive forum for all financial market stakeholders to further develop and improve the Malaysian financial markets,” says Adnan Zaylani, Director of Investment Operations and Financial Market of Bank Negara Malaysia.

“The Kuala Lumpur USD/MYR Reference Rate which is based on market transaction data rather than submission of quotations by selected banks in the previous methodology represents comprehensively all interbank FX transactions conducted during the trading period. This initiative elevates the USD/MYR FX benchmark rate setting process to global best practices, ensuring that the FX spot reference rate is well received domestically and internationally, contributing to the further development of the Malaysian financial markets,” added Lee K Kwan, President of FMA.


Bank Negara Malaysia
Financial Markets Association of Malaysia
15 June 2016





Kuala Lumpur USD/MYR Reference Rate


Index Definition


Kuala Lumpur USD/MYR Reference Rate


Volume weighted average reference rate of USD/MYR spot foreign exchange contracts transacted between two Authorised Dealers in Kuala Lumpur interbank market.

Effective Date

18 July 2016.

Publication Time

3:30 p.m. Kuala Lumpur time.

Qualifying Sample

All USD/MYR spot foreign exchange contracts transacted from 8:00 a.m. to 3:00 p.m. Kuala Lumpur time between two Authorised Dealers2, as reported and matched in online reporting system.

Calculation Method

Volume weighted average price based on Qualifying Sample.

Calculation Agent

Bank Negara Malaysia.

Fall-back Mechanism

In the event(s) that Bank Negara Malaysia deems necessary, such as insufficient Qualifying Sample, technical error or system issues, the Bank Negara Malaysia may invoke the fall-back mechanism to adopt the Bank Negara Malaysia’s 12:00 p.m. reference rate as the reference rate for this purpose. Bank Negara Malaysia will disclose such invocation.



Alternate Publication

The same reference rate shall be made available on Bloomberg and / or any other platform on timely basis for widest possible coverage. In case of inconsistencies, reference rate as published on REUTERS page MYRFIX02 shall be official.

1 Persatuan Pasaran Kewangan Malaysia

2 This will include Bank Negara Malaysia’s transactions with interbank FX market participants.


© Bank Negara Malaysia, 2016. All rights reserved.