Kuala Lumpur, mediaperkebunan.id – Bursa Malaysia Derivatives Berhad (“Bursa Malaysia Derivatives” or “the Exchange”) will relaunch its Single Stock Futures (“SSF”) contract on 24 March 2025 (Monday).
The revamped SSF will be based on the constituents of the FTSE Bursa Malaysia KLCI (“FBM KLCI”), comprising the 30 largest companies listed on the MAIN Market by market capitalisation.
This relaunch introduces key enhancements aimed at making derivatives offerings more accessible and cost-effective to broaden participation among investors.
The revamped SSF features a smaller contract size of 100 shares per contract, a significant reduction from the previous 1,000, making it more accessible for investors and for more effective hedging.
To further enhance affordability to traders, the contract requires a relatively low initial margin, starting from just 10% of the contract value, allowing for a lower capital outlay to begin trading.
In addition, the position limits have been increased to 13,500 contracts across all contract months, offering investors enhanced flexibility for portfolio management.
Dato’ Fad’l Mohamed, Chairman of Bursa Malaysia Derivatives and Chief Executive Officer of Bursa Malaysia Berhad, said that their commitment as a multi-asset exchange is to expand market opportunities for all segments of investors, and the relaunch of SSF is a cornerstone in our strategy to broaden participation to derivatives trading.
“This initiative underscores our dedication to meeting the growing demand of Malaysian investors for diversified investment tools and to enhance market liquidity,” said Dato’ Fad’l Mohamed,
as per the official statement received by Mediaperkebunan.id via email, Saturday (22/3/2025),
“By tracking the price movements of the underlying stocks, SSF enables investors to enhance their strategies, hedge positions, and manage portfolio risk effectively. Designed with retail investors in mind, this versatile tool caters to diverse market conditions,” said Mohd Saleem Kader Bakas, Director of Bursa Malaysia Derivatives.
While the product offers new opportunities, it is essential for investors to understand SSF, assess their risk appetite, and stay informed of market trends.
Market participants are encouraged to consult their licensed brokers and leverage available resources to make well-informed trading decisions.
The revamped SSF will be available for trading Monday to Friday, from 8:45 am to 5:15 pm during the morning and afternoon trading sessions.
SSF, a type of futures contract, derives its value from an individual stock and enables investors to capitalise on both bullish and bearish market conditions.
Each SSF contract represents an agreement to buy or sell a specified number of underlying stocks at a predetermined price on a specified future date.
As an effective tool for hedging stock portfolios, SSF empowers investors with versatile strategies for managing market exposure.
Just for your information, Bursa Malaysia is an Exchange holding company incorporated in 1976 and listed in 2005. It has grown to be one of the largest bourses in ASEAN.
Today, Bursa Malaysia operates and regulates a multi-asset exchange, offering a comprehensive range of investment, capital raising, and exchange-related facilities.
Bursa Malaysia is committed to its mission of Creating Opportunities, Growing Value for the Malaysian capital market, economy, and society. Learn more at bursamalaysia.com.
