Career and Trading Opportunities in Derivatives Market
Topic outline
Career and Trading Opportunities in Derivatives Market is a programme conducted by the Securities Industry Development Corporation (SIDC) for university students in Malaysia. It aims to provide university students with an awareness on derivatives market, its products and trading mechanism, players and career opportunities.
A derivative is a financial instrument that derives its value from the performance of an underlying asset. It could function as insurance where it allows participants to hedge their risks. Derivatives are created in the form of legal contracts. The buyer, who purchases the derivative, expects price to increase, is said to hold a “long” position. The seller, who sells the derivative, expects price to drop, is said to hold a “short” position.
The most common types of derivatives instrument are forward, futures, options, swaps and contracts for differences or in short CFD. The derivatives instruments and contract can either be traded over the counter and/or on the regulated exchange. In Malaysia, Bursa Malaysia Derivatives Berhad (BMD) is the exchange that regulates the derivatives market. Formerly known as Malaysia Derivatives Exchange Berhad (MDEX), it operates and maintains the futures and options exchange. It also offers the most liquid and successful crude palm oil futures (FCPO) contract in the world which is the global price benchmark for the palm oil industry. BMD operates under the supervision of the Securities Commission Malaysia and is governed by the Capital Markets and Services Act 2007 which falls under the jurisdiction of Malaysia’s Ministry of Finance.
Malaysian derivatives market offers opportunities for those who are interested to pursue their career as a professional derivatives trader. They have the option either to be a derivatives representative, also known as a futures broker representative (FBR) or a local participant. The difference between these two are, the FBR trades for their clients whereas the local participant trade for themselves. Besides FBR who are the front-end of a typical future brokers set-up, there few other job roles at the back-end such as compliance officer, risk manager and internal audit to support the FBR in undertaking their trading activities.
Career and Trading Opportunities in Derivatives Market - Recorded Webinar
Speaker: Wan Intan Bahiyah
Webinar Date: 9/8/2022
Source: SIDC
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Career and Trading Opportunities in Derivatives Market - Recorded Webinar
Speaker: Wan Intan Bahiyah
Webinar Date: 11/1/2022
Source: SIDC
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Career and Trading Opportunities in Derivatives Market - Recorded Webinar
Speaker: Wan Intan
Webinar Date: 14/9/2021
Source: SIDC
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Career and Trading Opportunities in Derivatives Market - Recorded Webinar
Speakers: Loana Yap (BMD) Royce Teh (MFBA) Salleh Hassan (SIDC)
Webinar Date: 5/4/2021
Source: SIDC
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Career and Trading Opportunities in Derivatives Market - Recorded webinar
Speakers: Logan Tee (BMD) Stephen Kwong (MFBA) Sarimah Ramthandin (SIDC)
Webinar Date: 26/11/2020
Source: SIDC
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link to open resource.