KUALA LUMPUR (June 8): Bursa Malaysia Derivatives is easing the restrictions on the establishment of branches and kiosks by futures brokers.
In a statement on Friday, Bursa Malaysia Derivatives said the easing of restrictions would help pave the way for greater retail participation in the derivatives market.
Bursa Malaysia chief executive officer and chairman of Bursa Malaysia Derivatives Datuk Tajuddin Atan said that with the easing and subsequent removal of this restriction, futures brokers would be able to set up branches and kiosks to reach out to clients throughout the country.
"In addition, this will enable the exchange to work together with the brokers to educate the public on futures and options trading through regulated establishments," he said.
Futures brokers will be allowed to open a combination of up to ten branches and/or kiosks (with a maximum of five branches) per year in the first two years of operations, subject to the relevant regulatory changes.
Subsequently after three years, there will be no limit to the number of branches and kiosks they can set up. Futures brokers wishing to set up branches and kiosks need to have a minimum paid-up capital of RM10 million.