Bursa Malaysia Derivatives eases restriction on establishment of branches/kiosks for futures brokers

Bursa Malaysia Derivatives eases restriction on establishment of branches/kiosks for futures brokers

 

08/06/2012

Bursa Malaysia Derivatives Berhad today announced the easing of restrictions for the setting up of branches and kiosks by futures brokers, paving the way for greater retail participation in the derivatives market.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Chairman of Bursa Malaysia Derivatives said, "With the easing and subsequent removal of this restriction, futures brokers will be able to set up branches and kiosks to reach out to clients throughout the country."

"In addition, this will enable the Exchange to work together with the brokers to educate the public on futures and options trading through regulated establishments."

Futures brokers will be allowed to open a combination of up to ten branches and/or kiosks (with a maximum of five branches) per year in the first and second year of operations, subject to the relevant regulatory changes.

There will be no limit to the number of branches and kiosks they can set up from the third year onwards. Futures brokers wishing to set up branches and kiosks need to have a minimum paid-up capital of 10 million ringgit.