News – Rules for futures broker reps eased

There are advantages and disadvantages in market liberization. When government reduce the restriction on the market participant (more people coming into the market) there are a lot of complexity that are introduced into the market. Although most of the proponents of market liberazation referred to more liquidity and natural price discovery on the reason for market liberization, few people who knew better, knew that the market always rigged towards a few deep pocket self interest. Everything they do is driven towards more capital concentration in the hands of the few. Although in the short term, the benefit is visible but in the long term a small group of people wins. And they win everything.


Bursa Malaysia has eased the eligibility requirement to become futures broker representatives of Bursa Malaysia Derivatives.

In a statement yesterday, the stock market regulator said under its dual-licensing fast-track programme until 2014, the experience needed has been further eased from 10 to five years. This is subjected to dealer representatives attending an extra two-day familiarisation programme.

The previous participation criteria requiring candidates to have at least 10 years of experience and attend a four-day familiarisation programme will remain for more experienced dealer representatives.

Bursa Malaysia chief executive officer and Bursa Malaysia Derivatives chairman Datuk Tajuddin Atan said the exchange was continuously engaged in efforts to create a more facilitative trading environment.

With the relaxation to five years, Bursa Malaysia is looking forward to dealer representatives coming forward to dual-qualify themselves, offering derivatives along side with equities as a complete portfolio to their clients, both as a trading and hedging tool.

“With the easing of the eligibility requirement, we expect dealer representatives who are at their initial years of trading to capitalise on this opportunity and include derivatives in their offering, and this will facilitate greater market liquidity.”