July 2, 2021

Bursa Malaysia Launches Night Trading!

 Bursa Malaysia Derivatives Bhd will launch after -hours (T+1) or Night Trading (Night Trading) trading sessions in the fourth quarter of 2021 to increase the attractiveness of the Malaysian derivatives market to traders worldwide.

According to Bursa Malaysia in a statement yesterday, Night Trading which is available for most Bursa Malaysia Derivatives products is a significant advancement that aligns the exchange with global market practices.

Bernama reported that the move is expected to increase the offer price findings of Bursa Malaysia Derivatives given the rapid growth in derivatives market participation since 2019.

Last year, the total number of contracts traded recorded a growth of 35%, rising to 18.2 million contracts from 13.5 million contracts in 2019, with foreign participation accounting for 46% of total trade.

On June 30, the monthly trading volume for the exchange's Crude Palm Oil Futures (FCPO) contracts renewed to a high of 1.7 million contracts equivalent to 42.6 million metric tonnes of crude palm oil traded, surpassing the previous record of 1.66 million contracts traded in March. last year.

“The current fluctuation of crude palm oil prices shows the need to create Night Trading. It will provide a channel for market participants to better manage their price risk exposures based on real -time global developments in different time zones.

"We will continue to work with our stakeholders to ensure the smooth implementation of Night Trading," said Bursa Malaysia Derivatives Chief Executive Officer Samuel Ho.

Bursa Malaysia Derivatives recently received principal approval (AIP) from the Securities Commission to conduct Night Trading.

“Improving the trading ecosystem will help maintain strong interest and further encourage the internationalization of the Malaysian derivatives market.

"Market participants can expect more infrastructure strengthening projects to be launched in stages later this year," Ho said.