Mdex urges remisiers to have dual licence

THE Malaysia Derivatives Exchange (Mdex) is urging remisiers to expand their trading capability by having a dual licence for equities and derivatives, its executive chairman Abdul Jabbar Abdul Majid said. 

“Remisiers should take the necessary steps to have a dual licence. In this way, remisiers will be in a better position to better serve the growing needs of their clients, thus expanding their trading capability and grow their client base,” Jabbar said at the second Mdex-Persatuan Remisier Bumiputra Malaysia (Pribumi) roadshow in Kuala Lumpur on Saturday.  

To date, Jabbar said only 464 remisiers or 9% from 5,616 remisiers were holding the dual licence, of which 99 were bumiputra remisiers. 

Meanwhile, Domestic Trade and Consumer Affairs Minister Tan Sri Muhyiddin Yassin in his speech when officiating the roadshow, said investments in Mdex offered additional business opportunities besides the income from trading on the KLSE which was limited these days. 

Muhyiddin said it could also enable the hedging of shares of clients. He said many remisiers were not keen on derivatives as they lacked knowledge on the intricacies and advantages of the derivatives market. 

According to Muhyiddin, issues such as why remisiers enter the market late and their lack of knowledge should be examined more deeply. 

He said that other issues such as managing risks and whether they conformed to Islamic principles should be clarified to attract more remisiers. 

He said the broker representatives for the futures markets totalled 694 as of Feb 25, of which 67% were remisiers. – Bernama  

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