DERIVATIVES MARKET
Bursa Malaysia • Annual Report 2013
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MARKET IMPROVEMENTS
In 2013, Bursa Malaysia undertook several initiatives to further strengthen
the visibility, accessibility and vibrancy of the Derivatives Market. Our efforts
included the following:
• Introduction of Negotiated Large Trade (NLT) for Options Contracts
This initiative introduced in February 2013 enables institutions to undertake
large trades at a single price registered with the Exchange. For 2013, 771
options contracts (500 on OCPO and 271 on OKLI) have been registered using
the NLT facility.
• Launch of Gold Futures Contracts (FGLD)
This new asset class provides a trusted way to trade gold in Malaysia. This
contract launched in October 2013 has attracted open interest of over 1,000
contracts, which is encouraging for a debut contract.
• Expansion of Dual Licensees, Local Participants and Branching
We continue to grow the sales force in the derivatives industry. As at end
2013, we had successfully recruited 158 new dual licensees with the total
number of new dual licensees rising by 17% to 1,084 licensees. 27 new locals
were recruited increasing the total number of new locals by 18% to 175 in
2013. The year also saw 3 new branches being opened by standalone futures
broking firms.
The launch of Gold Futures Contract at Bursa Malaysia Berhad
MARKET ENGAGEMENT
Over the course of 2013, we engaged in excess of 3,400 institutional investors
and more than 5,300 retail investors via several platforms that effectively
promoted our Derivatives Market. The following were among the activities that
led to increased domestic and foreign market participation:
• Palm and Lauric Oils Conference and Exhibition (POC) 2013
The POC is the largest edible oil conference held globally attracting over 2,000
participants from more than 50 countries. Themed “Price Volatility - Ride It,
Manage it”, the POC provides the platform for international players from the oils
and fats fraternity to understand the challenges that affect the industry and hear
expert views on demand and supply with a view of price forecast for the year.
• Educational Partnerships with Universities
The Exchange regularly conducts education sessions for university students
to introduce them to the derivatives industry. On a yearly basis, workshops are
conducted in collaboration with selected futures brokers to prepare teams for
a global Trading Challenge organised by the Chicago Mercantile Exchange.
The objective of this programme is to build a pipeline of a new generation of
traders. Five universities participated in 2013’s programme.
• China International Oil & Oilseeds Conference (CIOC) 2013
An extension of the POC, the CIOC brings together the various market players
of the edible oil industry. Bursa Malaysia leverages on this conference to
promote the trading of our FCPO. The joint collaboration between Bursa
Malaysia and Dalian Commodity Exchange in hosting this Conference has
been extended for another three years.
• Derivatives Day
Derivatives Day is a programme to educate the public on the opportunities in
the derivatives industry. Conducted in various cities within Malaysia, it also
serves as an avenue to introduce Local Participantship as a career for those
aspiring to be professional traders.
• Recruitment of Foreign Clients from Asia and Europe
We participated in various international events to recruit potential clients
which included hedge funds and proprietary trading firms to provide additional
liquidity to the Derivatives Market.
Chief Executive Officer’s Message and Management Discussion and Analysis
From the Board of Directors and Senior Management
