Malaysian Derivatives Trading Volumes Hit Record High

Malaysian derivatives have been taking the same medicine that is driving record trading activity at the worlds largest trading venues. The country’s main bourse, Bursa Malaysia hit a new daily record on the 27th of August. The South East Asian Exchange reached 91,449 contracts traded, beating the previous high of 87,123.

Global markets have been buoyant during the summer months, a period that usually sees lower activity. The on-going threats in the Middle East and Fed tapering are causing a roller coaster effect.

Bursa Malaysia Derivatives' Chief Executive Officer, Mr Chong Kim Seng said in a statement: "We anticipate this rising trend in traded volume to continue due to greater Volatility and increased interest in the derivatives market."

On a domestic note, the main stock index, Futures Kuala Lumpur Index (FKLI) has been driving volumes due to increased volatility. Palm Oil Futures have also been aiding the interest in the markets; the stronger Palm Oil demand supported the Palm Oil Futures (FCPO) contract volumes. The Bursa Malaysia was the first Asian exchange to launch a Palm Oil Option contract last month.

The trading bourse, a listed company on the Malaysian exchange, posted strong gains for the second quarter of this year. The Bursa Malaysia Bhd recorded its best quarterly performance since 2007 as volumes have been increasing throughout 2013. Markets were upbeat after the general election earlier this year. The Bursa has reported a net profit of 45%, after a surge in trading volumes post general election in May, which boosted the exchange's net profit by 45% to RM54.8 million(US $16.4 million) for the three months ended June 30, 2013 (Q2) from RM37.73 million a year ago.