A great way Derivatives is a financial instrument that derives its value from the performance of an underlying asset ranges from simple futures contracts to sophisticated option products. The derivatives industry eco-system in Malaysia consists of the regulators and the market intermediaries i.e. derivatives exchange and brokers.

Securities Commission Malaysia (SC) act as the regulator for the capital market industry including the derivatives market. The SC is responsible to administer and enforce the capital market rules and regulation, as well as approving licensing for a TP and its representatives to undertake dealing in derivatives activities.

Bursa Malaysia Derivatives (BMD) as one of the derivatives intermediaries provides the trading platform for all exchange traded derivatives contract. The most popular contacts traded on BMD is Crude Palm Oil Futures (FCPO) and FTSE Bursa Malaysia Composite Index Futures (FKLI). As the derivatives market is highly dynamic, trading rules and guidelines will be updated by BMD from time to time. To abreast with the latest development in derivatives markets, all traders and other interested parties are encouraged to be constantly alert to ensure their knowledge on derivatives are relevant and up-to-date.

Derivatives brokers, which are commonly known as licensed futures broker or Trading Participant (TP), is a company that carries on the business of dealing in derivatives. Commonly there are four (4) main units under the structure of a TP i.e. 1) business development and sales, 2) promotions and events, 3) operations and settlements and 4) dealing. Each unit is required to manage its own internal stakeholders and external stakeholders such as the regulator, the exchange and clients. Besides attached with the TP, there are various opportunities for an individual to pursue a career in derivatives market. With the right skill sets and interest matching the job requirements, the individual may opt to pursue their career with a corporation such as banks and asset management companies.

Expose, Explore and Educate: The 3Es about Derivatives Future Potential (Part 2) - Recorded Webinar

Speaker: Wan Intan Bahiyah

Webinar Date: 29/1/2021

Source: SIDC

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