Malaysian bourse delays launch of single-stock futures

The Malaysia Derivatives Exchange (MDEX) has postponed the launch of single-stock futures (SSFs) contracts following a decision to further review the implications of trading the products on the main stock market. SSFs were initially scheduled for launch by the first quarter of this year.

A spokesperson for the exchange said MDEX is continuing a consultation process with industry participants such as brokers and futures traders, but has no set timetable for the talks.

She added that the exchange is concerned about possible “negative effects" from SSFs. “We’re basically just taking more time to weigh all these considerations and see if the market is ready for this product,” she said.

To date, the range of products offered at the exchange includes crude palm oil futures, KLSE composite index futures, three-month Kuala Lumpur interbank offered rate interest rate futures and five-year Malaysian government securities futures.