Futures brokers can now set up branches

Bursa Malaysia Derivatives Bhd today announced the easing of restrictions for the setting up of branches and kiosks by futures brokers, paving the way for greater retail participation in the derivatives market.

They will be allowed to open a combination of up to 10 branches and/or kiosks (with a maximum of  5 branches) per year in the first and second year of operations, subject to the relevant regulatory changes.

There will be no limit to the number of branches and kiosks they can set up from the third year onwards.download film

Futures brokers wishing to set up branches and kiosks need to have a minimum paid-up capital of RM10 million.

“With the easing and subsequent removal of this restriction, futures brokers will be able to set up branches and kiosks to reach out to clients throughout the country,” Bursa Malaysia CEO and Bursa Malaysia Derivatives chairman Datuk Tajuddin Atan said in a statement.

This would also enable the exchange to work together with the brokers to educate the public on futures and options trading through regulated establishments, he added. – Bernama

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