Bursa Welcomes Malacca Securities As First Islamic Participating Organisation To Offer Shariah Discretionary Trading Services

Alex Cheong Pui Yin

7th July 2022 - 2 min read

Bursa Malaysia has welcomed Malacca Securities Sdn Bhd onboard as the first Islamic participating organisation that offers shariah discretionary trading services. This is as the local bourse continues to enhance its infrastructure to provide wider and easier access for investors to participate in the equity market.

“With the addition of shariah discretionary trading, the investing public will have more options when investing in the equity market,” said the chief executive officer of Bursa Malaysia, Datuk Muhamad Umar Swift, adding that other organisations should also consider offering shariah discretionary trading services to their clients.

Discretionary trading is a form of trading that is suited for retail clients who wish to invest in equities, but are unable to monitor the market personally. As such, a participating organisation (in this case, Malacca Securities) will execute mandated trades on behalf of the client.

The managing director of Malacca Securities, Lim Chia Wei said that the company has been offering conventional trading services since 2016. Meanwhile, its capability to provide shariah discretionary trading came following the issuance of a pronouncement by the shariah committee of Bursa Malaysia Islamic Service Sdn Bhd. Essentially, the pronouncement now permits Islamic participating organisations to offer such discretionary trading for their clients based on shariah principles.

Ultimately, Lim said that Malacca Securities hopes to continue helping clients to achieve the best returns possible using reliable trading and execution strategies. “This will relieve clients of the need to spend excessive time formulating trading decisions when dealing with the stock market,” he said, adding that investors will attain a tailored, structured, and shariah-compliant discretionary equity portfolio via Securities Malacca’s services.

(Source: Bursa Malaysia)

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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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