Ringgit Operations Monitoring System (ROMS) is a large-value foreign exchange transaction reporting system owned and operated by

Bank Negara Malaysia The Central Bank of Malaysia (BNM; ; Jawi: ) is the Malaysian central bank. Established on 26 January 1959 as the Central Bank of Malaya (''Bank Negara Tanah Melayu''), its main purpose is to issue currency, act as the banker and advisor to the ...

(BNM), the

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Malaysia Malaysia is a country in Southeast Asia. Featuring the Tanjung Piai, southernmost point of continental Eurasia, it is a federation, federal constitutional monarchy consisting of States and federal territories of Malaysia, 13 states and thre ...

. It automates a major part of compliance reporting between Authorised Dealers (who are licensed FX intermediaries) and Bank Negara Malaysia (BNM). ROMS is built using web-based technology and runs on a

web browser A web browser, often shortened to browser, is an application for accessing websites. When a user requests a web page from a particular website, the browser retrieves its files from a web server and then displays the page on the user's scr ...

on a PC workstation to minimise cost, ease maintenance and establish a user-friendly interface. Data security is implemented by using a secure private

broadband In telecommunications, broadband or high speed is the wide-bandwidth (signal processing), bandwidth data transmission that exploits signals at a wide spread of frequencies or several different simultaneous frequencies, and is used in fast Inter ...

network between BNM and financial institutions. This network is called FINET. ROMS is not deployed over the Internet. FINET in turn, runs over COINS, a nationwide enterprise level data network operated by

Telekom Malaysia Telekom Malaysia Berhad or simply TM is a Malaysian telecommunications company that was founded in 1984. Beginning as the national telecommunications company for fixed line, radio, and television broadcasting services, it has evolved to become ...

, the national telecommunication provider. Users are authenticated via a password challenge-response process,

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registration and digital certificates. Reporting financial institutions are required to report all wholesale FX transactions above USD $1 million on trade date basis. The daily system start-up time for ROMS is at 8:00 a.m. while the system cut-off time for the submission via ROMS is at 5:00 p.m. Any extension on the system cut-off time is at BNM's discretion based on the financial institution (FI) or authorised dealer (AD) request; however, the authorised dealer will be charged a specific fine in order to do so. If a failure to submit all transaction reports occurs on the same day into the ROMS system, BNM will impose a fine to the specific AD as a penalty. Other FX transactions below USD $1 million and above RM 50,000 are recorded on a lagged basis but must be within the fortnightly reporting period (before the 15th and end-of-month).

Transactions

There are three main transaction types inside ROMS which are: 1. Swap 2. Forex 3. Third currency By the end of day after system closing time, the ROMS manager or the system administrator processes all transactions recorded for the day and extracts them from the ROMS system. Following that, the data is calculated using three type of calculation formats, which are: * High and low transaction * High and low rate summary * High and low transaction full Afterwards, the data taken from ROMS is submitted to the BNM portal where it is combined with other data from another Foreign Exchange Administration (FEA) system to calculate the exchange rate for that day; the final result is posted on the BNM websites under these following sections: 1. Exchange rates 2. USD/MYR interbank intraday rate 3. Daily FX turnover 4. Interbank swap

References

{{Reflist Economy of Malaysia