What is Bursa Malaysia? Malaysia stocks exchange
What is Bursa Malaysia?
Almost all countries have exchanged for derivative trading, no exception with Malaysia, they have Bursa Malaysia (MYX).
For an investor, the existence of this exchange will play a very important role.
Because they will know the development of superior shares.
So they can invest money in stocks that have the potential for good growth.
Even with Bursa Malaysia, it will help both foreign and domestic investors.
Finding shares or indices that provide potential gain.
Bursa Malaysia was formerly the KLSE which stands for Kuala Lumpur Stock Exchange.
This is a holding company that provides different services related to trading derivatives and securities and others.
Trading forex, crypto and CFD with TenkoFX
Regulated by the International Financial Services Commission (IFSC) of Belize.
History Of Bursa Malaysia
Bursa Malaysia has a fairly long history, before becoming the Bursa Malaysia, the first time with the name Kualalumpur stock exchange or KLSE.
In 1930 the Singapore Stock Brokers Association was established as an official securities institution in Malay Land at the time when the KLSE began.
Then in 1937 KLSE in the list at the Association of Malay Land Stock Brokers, at this time they had not traded public shares.
However, 1960 after establishing Malay Land Stock Exchange.
They start trade public shares on May 9.
The next development was in 1961.
The board system was launching with two trading rooms, one each in Singapore and one in Kuala Lumpur.
Both are use connection with online telephone lines and become a single market.
With similar shares and shares listed in a single set of prices on both boards.
In 1964 they establishing the Stock Exchange of Malaysia.
After that, there was a separation of Singapore from Malaysia in 1965.
1973 Malaysia and Singapore Stock Exchange became the Kuala Lumpur Stock Exchange Berhad and the Singapore Stock Exchange.
Following the termination of the currency exchange between Malaysia and Singapore.
1976 The Kuala Lumpur Stock Exchange was incorporated as a liability company.
And took over the operations of the Kuala Lumpur Stock Exchange Berhad in the same year.
1994 The Kuala Lumpur Stock Exchange Berhad change to the ‘Kuala Lumpur Stock Exchange’.
2004 The Kuala Lumpur Stock Exchange changed its name to Bursa Malaysia Berhad (Bursa Malaysia)
Then following the demutualization process.
This aims to enhance the position of Bursa Malaysia to be more competitive as well as to respond to global trends by making it a customer-oriented and market-based exchange.
The first index for Bursa Malaysia is the Kuala Lumpur Composite Index (KLCI)
Bursa Malaysia continues to expand partnerships with other National Exchanges, such as ASEAN.
And is also partnering with the Chicago Mercantile Exchange with the aim of improving access to its global derivative products offering.
Bursa Malaysia derivatives
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Malaysia’s economy is largely derived from natural resources, the former British colony is then getting fast growth.
But later turned into a rapidly developing multi-sector economy.
Malaysia is slowly liberalizing its economy, but government ownership remains prevalent in key sectors of banking, media, cars, and airlines
Established in 1993, Bursa Malaysia Derivatives Berhad is a subsidiary of Bursa Malaysia Berhad.
BMD provides services to provide, manage and lend equity, interest rates, approvals, agricultural commodities especially crude palm oil and palm kernel, metal commodities (gold and tin) and settlement services.
BMD products are available on the CME Globex electronic trading platform for greater distribution of Malaysian derivative offers to the global market.
The most liquid futures contract is crude palm oil.
Palm kernel and crude palm oil futures contracts are traded on Bursa Malaysia in Malaysian Ringgit (MYR) and US dollar-denominated contracts.
In general, Bursa Malaysia Derivatives (BMD) offers 3 categories of derivatives:
- Commodity Derivatives.
- Equity Derivatives.
- Financial Derivatives.
In commodity derivatives, BMD offers several instruments that are part of this category;
- Gold Futures (FGLD)
- Crude Palm Oil Futures (FCPO)
- USD RBD Palm Olein Futures (FPOL)
- Crude Palm Kernel Oil Futures (FPKO)
- USD Crude Palm Oil Futures (FUPO)
- Options on Crude Palm Oil Futures (OCPO)
- USD Tin Futures (FTIN)
Equity derivatives also have several instruments that are in this category:
- FKLI or FTSE Bursa Malaysia KLCI Futures
- OKLI or FTSE Bursa Malaysia KLCI Options
- SSFs or Single Stock Futures
- FM70 or Mini FTSE Bursa Malaysia Mid 70 Index Futures
Meanwhile, in financial derivatives, they offer four types of financial products that can be selected
- Three Months Kuala Lumpur Interbank Offered Rate Futures (FKB3)
- Three Years Malaysian Government Securities Futures Contract (FMG3)
- Five Years Malaysian Government Securities Futures Contract (FMG5)
- Ten Years Malaysian Government Securities Futures Contract (FMGA)
To trade sell or buy derivative products through Bursa Malaysia derivatives refers to trading hours in Malaysia.
Each derivative product has different contract specifications, to get more information you can read it on the Bursa Malaysia Derivatives official website.
How to trade online in Bursa Malaysia
Maybe you have experienced being an investor and want to try to trade in Bursa Malaysia because you find this interesting and profitable.
How to do online trading is through several steps that you must go through
- First, you have to open a Central Depository System (CDS) account.
- Second, open a trading account with a stockbroker.
- Third, Get a remisier
- Buying and Selling Shares.
To open a CDS (Central Depository System) you are at least over 18 years old, but some banks require a minimum of 21 years.
And open a CDS account you can approach Authorized Depository Agents (ADAs), i.e. stockbroking companies.
However, you need a valid ID card to open a CDS account.
Through stockbroking companies then you open a trading account.
To buy and sell shares, you can call a stockbroker or remisier who will determine that the sales and purchase orders have been matching.
You can start making transactions if already completed the steps, but there are also a number of fees that will be involved.
Like as brokerage fees – a maximum of 0.7% of the total value of traded shares, normal practice is 0.6%, Clearing fee – 0.03% of the contract value at the limit of RM200 and stamp duty – RM1 for each valued at RM1,000
The economic growth of Malaysia, which is growing rapidly, will certainly bring new investors to try to invest in this country.
Bursa Malaysia is one of the leading exchanges in ASEAN that provides access to local and international investors to trade on financial products that are part of public services.
The Company office at the address on the 3rd Floor, Exchange Square, Bukit Kewangan, 50200 Kuala Lumpur.
Where Kualalumpur is the capital of the state of Malaysia, so it is not surprising if Bursa Malaysia is in this city.
KLCI ( Kuala Lumpur Composite Index) also illustrates the condition of the Malaysian economy which is also part of the analysis of investors when they choose investment in Malaysia.
The development of technology in the field of financial technology has made it easier for investors and speculators.
Therefore investors or traders can use foreign brokerage services to try to get a good profit from the forex market, indices, or stocks.
A Malaysian they can also use TenkoFX broker to trade forex and also CFD or crypto trading.
As long as they meet all company requirements, the distance between continents is not a barrier to speculating on financial markets.