Malaysian bourse plans to launch single-stock futures

The Malaysia Derivatives Exchange (MDEX) plans to introduce single-stock futures (SSFs) by the first quarter of this year. The move is expected to boost liquidity in the country’s stock and derivatives markets, said Zaha Rina Zahari, chief operating officer at the exchange.

The first tranche of SSFs will be based on 1,000 shares with a minimum price ticker of 0.02 ringgit per share, or 20 ringgit ($5.26) per contract.

The exchange received approval in principle from Malaysia's Securities Commission on January 16, and is currently working towards the implementation of joint integration tests and market simulations, which will take place from January to March.

“This contract is especially targeted to retail investors as well as financial institutions, portfolio managers, provident funds, asset managers and MDEX local members,” said Zahari.

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