Published On: Wed, Jan 4th, 2012

Bursa Malaysia Loosens Restrictions for Local Derivatives Traders

Individuals who aspire to be professional derivatives traders or Local Participants can now do so by attending a two-day familiarisation programme with Bursa Malaysia Derivatives.

A Local Participant is a professional derivatives trader who trades their own account, or is a self-employed trader. With the easing of entry requirement, candidates no longer need to take the licensing examination, or show the relevant academic qualification and industry experience. This is part of the Exchange’s initiatives to increase the number of Local Participants in the market.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Chairman of Bursa Malaysia Derivatives said, “We are cognisant that in this day and age, those who want to trade have a lot of resources at hand to make informed decisions. As such, we should not legislate qualification for those who want to trade in derivatives. In substitution of the qualification requirement, we are introducing a familiarisation programme so Local Participants can equip themselves with the relevant knowledge and understand the risks associated with derivatives trading.

“This liberalisation measures signifies our commitment to grow the Local Participants base as they contribute greatly to market liquidity. Traders can now easily manage their own portfolio, while at the same time enjoy the many benefits available including fee rebate and tax abatement. With the advance of internet trading, they can trade anywhere, anytime.”

Local Participants can trade with their own funds and are not permitted to conduct trades on behalf of Clients. They will enjoy exchange and clearing fees rebate if they trade 1,000 contracts per month or more. Local Participants are registered with Bursa Malaysia Derivatives (BMD) and can trade in all BMD’s products.

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