Malaysian bourse delays launch of single-stock futures

The Malaysia Derivatives Exchange (MDEX) has postponed the launch of single-stock futures (SSFs) contracts following a decision to further review the implications of trading the products on the main stock market. SSFs were initially scheduled for launch by the first quarter of this year.

A spokesperson for the exchange said MDEX is continuing a consultation process with industry participants such as brokers and futures traders, but has no set timetable for the talks.

She added that the exchange is concerned about possible “negative effects" from SSFs. “We’re basically just taking more time to weigh all these considerations and see if the market is ready for this product,” she said.

To date, the range of products offered at the exchange includes crude palm oil futures, KLSE composite index futures, three-month Kuala Lumpur interbank offered rate interest rate futures and five-year Malaysian government securities futures.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here