Bursa Malaysia Derivatives Set To Begin After-Hours Trading Starting Today

Alex Cheong Pui Yin

6th December 2021 - 2 min read

(Image: The Malaysian Reserve/Razak Ghazali)

Bursa Malaysia Derivatives Bhd has announced the launch of its highly anticipated after-hours (T+1) night trading session (After-Hours Trading), which is set to begin this very evening (6 December 2021).

With this latest update from the subsidiary of Bursa Malaysia, the local bourse will be allowed to extend the current market trading hours for derivatives, thereby closing the gap between local and foreign market trading hours. Specifically, investors can now also trade derivatives between 9pm to 11.30pm from Monday to Thursday, in addition to the usual hours of between 8.15am or 8.30am to 3.15pm or 6.15pm (depending on the type of derivatives).

Note that the After-Hours Trading session will be made available for selected commodity as well as equity and financial derivatives. Among them include Crude Palm Oil Futures (FCPO), USD RBD Palm Olein Futures (FPOL), Gold Futures (FGLD), USD Tin Futures (FTIN), FTSE Bursa Malaysia KLCI Futures (FKLI), and Mini FTSE Bursa Malaysia Mid 70 Index Futures (FM70). You can find the full list of products that are eligible for After-Hours Trading sessions here.

According to Bursa Malaysia Derivatives, this development will create new trading opportunities, thereby increasing the competitiveness and attractiveness of its products. In turn, it will draw greater participation from both local and international investors.

Bursa Malaysia Derivatives also highlighted that After-Hours Trading sessions can be regarded as a risk management tool since investors will be able to manage their exposure to risk in real time, caused by market movements that happen during US and European market hours. In particular, the chief executive officer of Bursa Malaysia Derivatives, Samuel Ho noted the importance of After-Hours Trading sessions for the crude palm oil market.

“More recently, the Exchange’s trading volume for FCPO in the third quarter of this year recorded a positive growth momentum with a total of 11.8 million contracts, an increase from 10.8 million in the same period last year. After-Hours Trading is important for hedging in the highly volatile crude palm oil market. Market participants will now have an avenue to better manage their risk exposure based on real-time global developments,” Ho stressed.

Bursa Malaysia Derivatives had first revealed its intention to introduce After-Hours Trading sessions several months back in July. During the announcement, it said that this update is expected to take place in the fourth quarter of 2021.

(Sources: Bursa Malaysia, The Edge Markets)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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