KUALA LUMPUR, Malaysia (July 1): By the fourth quarter of 2021, Bursa Malaysia Derivatives Bhd will introduce an after-hours (T+1) trading session (Night Trading) to increase the appeal of the Malaysian derivatives market to traders across the world. Night Trading, which is available for most Bursa Malaysia Derivatives products, is a significant move that aligns the exchange with worldwide market standards, according to a statement from the exchange.
Given the significant expansion in derivatives market participation since 2019, it is expected to improve price discovery of Bursa Malaysia Derivatives’ offerings.
Last year, the total number of contracts traded increased by 35%, from 13.5 million contracts in 2019 to 18.2 million contracts in 2018, with international participants accounting for 46% of total trading activity.
The overall monthly trading volume for the exchange’s Crude Palm Oil Futures contract (FCPO) increased to 1.7 million contracts on June 30, 2021, exceeding the previous high of 1.66 million contracts traded in March 2020.”
The need for Night Trading was proven by the recent volatility in crude palm oil prices. Market players would be able to better manage their price risk exposure based on real-time global developments in various time zones.
“We will continue to engage with our stakeholders to guarantee a smooth implementation of Night Trading,” said Samuel Ho, chief executive officer of Bursa Malaysia Derivatives.
The Securities Commission Malaysia recently granted Bursa Malaysia Derivatives approval-in-principle (AIP) to operate Night Trading.
“Improving the trading ecosystem will assist the Malaysian derivatives market maintain its high level of interest and support further internationalization.”
Market players should expect more infrastructure improvement projects later this year, which will be implemented in stages “Ho added./n
