Bursa Malaysia onboards Malacca Securities as first Islamic participating organisation

Bursa Malaysia CEO Datuk Muhamad Umar Swift

KUALA LUMPUR: Bursa Malaysia Bhd has onboarded Malacca Securities Sdn Bhd (Malacca Securities) as the first Islamic participating organisation to offer Shariah discretionary trading services to clients effective July 1, 2022.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the stock exchange is continuously enhancing 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,” he said in a statement today.

Bursa Malaysia also encourages other participating organisations to consider offering Shariah discretionary trading services to their clients.

Meanwhile, Malacca Securities managing director Lim Chia Wei said the company has been offering conventional discretionary trading services since 2016 and will continue to help clients achieve the best returns possible using tested and proven trading and execution strategies.

"This will relieve clients of the need to spend excessive time formulating trading decisions when dealing with the stock market,” Lim said.

Malacca Securities’ offering comes following the issuance of a Shariah pronouncement on discretionary trading by Bursa Malaysia Islamic Services Sdn Bhd’s shariah committee, which now permits Islamic participating organisations to carry out such discretionary trading for their clients based on Shariah principles.

The goal of Shariah discretionary trading (services) is to enable the Islamic participating organisations to provide investors with a tailored, structured and Shariah-compliant discretionary equity portfolio.

It is a solution that will appeal particularly to retail clients who do not have the privilege of being able to monitor the equity market, but who are keen to remain invested in equities. - Bernama