Zeti Akhtar Aziz: New platform to serve the Islamic financial industry Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the launch of Bloomberg’s Enhanced Islamic Finance Platform, Kuala Lumpur, 21 February 2011. *  *  *  It is my pleasure to join you this morning at this Launch of the Bloomberg Enhanced Islamic finance platform. This development is timely as Islamic finance is envisioned to continue to make great strides in this new decade. Such an information platform is an important element for the more efficient functioning of the Islamic financial markets in the international financial system. In this recent ten years we have seen significant developments in Islamic finance in both our domestic and the international financial system. In this more challenging and uncertain environment, Islamic finance has demonstrated its resilience and viability and has sustained its growth momentum. Today, with the increasing internationalisation of Islamic finance, its continued growth and expansion will very much depend on extensive information which can be efficiently accessed. Bloomberg has for two decades been serving the Islamic financial community providing access to news offerings and timely data and information. The initiative today to enhance its Islamic finance platform is thus a highly welcomed development. The seamless flow of information in the Islamic financial markets is integral to facilitate the efficient price discovery process and maintain the vibrancy of the Islamic financial industry.

This initiative reflects our commitment towards financial integration in the ASEAN region and the global financial system through closer linkage with other central securities depositories, namely Euroclear and the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority. It is expected that other central securities depository will participate in this initiative to heighten this cross-border linkage. MyClear is thus set to be one of the key multilateral settlement platforms that will facilitate sukuk trading transactions. The implementation of this initiative which is scheduled to be completed in the second half of 2011 offers cost-effective access for foreign investors to invest in Malaysian securities deposited with MyClear. At the same time, it will enable Malaysian investors to invest in foreign securities deposited with international and regional central securities depositories institutions. Moving forward, MyClear will continue to expand its horizon to other regions across the world. Another infrastructure development that is taking shape in the international Islamic financial system is the establishment of the International Islamic Liquidity Management Corporation (IILM). Launched in October 2010, the IILM has begun its operations in Kuala Lumpur on the 1st of February. Its main task is to issue short-term multi-currency liquidity instruments to facilitate the cross-border liquidity management between financial centres and at the same time enhance the financial inter-linkages. The IILM is scheduled to roll out the issuance of liquidity instruments later this year. This will allow for more efficient management of financial flows across borders and thus contribute towards the efficient internationalisation of Islamic finance.