Rakuten Securities gets Malaysian license

Rakuten Securities gets Malaysian license

Rakuten Securities, the forex brokerage subsidiary of Japan’s Rakuten Inc., has obtained a Capital Markets Services License from the Securities Commission Malaysia, for the regulated activities of dealing in securities restricted to listed securities and investment advice.

According to the announcement made by Rakuten’s joint venture partner Kenanga Investment Bank Berhad to the Bursa Malaysia, the two, along with Rakuten Trade Sdn Bhd, will jointly collaborate in providing online brokerage services through the company. The joint venture has been set up back in April 2016 and was expecting regulatory approval.

With its rapidly growing economy, Malaysia is an attractive market for the global forex brokers, with some of them, like FXCM, and XM already present there with offices. Since the country is predominantly Muslim, the Securities Commission requires that brokers offer swap-free Sharia-compliant trading accounts.

Tokyo-based Rakuten Securities is a multi-asset broker, which product portfolio includes diverse trading instruments, including more than 40 currency pairs, options, futures, commodities, stocks and bonds. It is part of Japanese conglomerate Rakuten Inc. The holding company’s subsidiaries are active in a number of intenet-based businesses, including finance, retail e-commerce, travel, e-money, and internet banking.

Rakuten Securities acquired in 2015 from US forex broker Forex Capital Markets, or FXCM, its two units FXCM Japan and FXCM Asia, aka FXCM Hong Kong, which is now branded Rakuten Securities Hong Kong Ltd., or Rakuten Securities HK.

Kenanga Investment Bank Berhad is a publicly trading Malaysian financial services company which provides investment banking, stockbroking and investment management services. The company’s products and services include corporate and institutional coverage, corporate finance, debt and equity capital markets, corporate banking, Islamic finance, equity broking, equity derivatives and structured products, and treasury, as well as investment research and advisory services.

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