KUALA LUMPUR: Bursa Malaysia Derivatives Bhd's After-Hours (T+1) Night Trading Session, which goes live on Dec 6, is expected to bode well for the country's derivatives market, says Bursa Malaysia Derivatives CEO Samuel Ho.
“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," he said in a Monday statement following the launch of the night trading service.
With its improved price discovery, After-Hours Trading can be used as a hedging and risk management tool, allowing investors to manage their risk exposure to price fluctuations in response to any major market movement that occurs during the US and European market hour.
The After-Hours Trading offered by Bursa Malaysia Derivatives is an extension of the Exchange’s current market trading hours in line with global market practices.
Market participants will now be able to trade between 9pm to 11.30pm from Monday to Thursday, thereby closing the gap between local and foreign market trading hours. As a result, After-Hours Trading will not only create new trading opportunities, but it will also draw in greater international participation.
"By strengthening the connection between the Malaysian derivatives market and the global markets, the price discovery and effectiveness of our products as risk management solutions will be improved, hence enticing global investors to trade in our market," added Ho.