KUALA LUMPUR: Bursa Malaysia Derivatives Bhd will relaunch its Single Stock Futures (SSF) contract on March 24.
In a statement, Bursa Malaysia said 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.
The revamped SSF now has a reduced contract size of 100 shares per contract, down from 1,000, enhancing accessibility for investors and improving hedging efficiency.
According to Bursa Malaysia, The contract enhances affordability with a low initial margin starting at 10% of the contract value, reducing the capital required to start trading.
In addition, the position limits have been increased to 13,500 contracts across all contract months, offering investors enhanced flexibility for portfolio management.
“Our 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,” Bursa Malaysia Derivatives chairman and CEO Datuk Fad'l Mohamed said.
Meanwhile, director of Bursa Malaysia Derivatives Mohd Saleem Kader Bakas said: “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.”
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.
