Document background
The Margin Agreement serves as the primary contractual document governing margin trading relationships in the Malaysian financial market. It is essential for financial institutions offering margin facilities and clients seeking to trade securities using borrowed funds. The agreement must comply with Malaysian financial regulations, including the Capital Markets and Services Act 2007 and Securities Commission guidelines, while potentially incorporating Islamic finance principles where required. This document typically covers credit limits, margin requirements, collateral arrangements, risk disclosures, and default procedures. It's particularly important in the context of Malaysian market practices, where both conventional and Islamic financial systems operate in parallel. The agreement provides protection for both the lending institution and the borrower by clearly defining rights, obligations, and risk management procedures.
