Bursa Malaysia Derivatives Extends After-Hours (T+1) Trading

Bursa Malaysia Derivatives Berhad will extend its After-Hours (T+1) trading session (After-Hours Trading) for selected derivatives contracts effective 5 December 2022.

The current After-Hours Trading session is from 9.00pm to 11.30pm every Monday to Thursday, which will now be extended to end at 2.30am.

As global markets are increasingly volatile, it is imperative for the Exchange to constantly assess the market and cater to investors’ ever-changing need for managing their portfolio risk. The After-Hours Trading extension offers market participants the opportunity to narrow price gaps and adjust their risk exposure when trading derivatives contracts that are reactive to the international market news and events.

“With this extension, market participants who trade our contracts, like our newly enhanced Gold Futures (“FGLD”) contract, will benefit from this extension as the price of gold in the spot market is highly correlated with the U.S. market news,” said Mohd Saleem Kader Bakas, Acting Director of Bursa Malaysia Derivatives.

“Macro events contribute to price volatility. With this, traders would be able to mitigate the price gaps between our closing market prices and the following day’s opening prices.”

The derivatives contracts that will be available to trade during the After-Hours Trading session until 2.30am are FTSE Bursa Malaysia KLCI Futures (FKLI), Options on FTSE Bursa
Malaysia KLCI Futures (OKLI), Mini FTSE Bursa Malaysia Mid 70 Index Futures (FM70) Gold
Futures (FGLD), USD Tin Futures (FTIN), and the 3-Month Kuala Lumpur Interbank Offered Rate (KLIBOR) Futures (FKB3).

Meanwhile, there is no change to the existing After-Hours Trading Session for Palm Derivatives contracts that end at 11.30 pm.

Since the introduction of After-Hours Trading in December 2021, the Exchange has seen increased active trading volume during the night session.

Monthly trading volume has risen nearly three times from 51,513 contracts traded in December 2021 to 142,972 contracts traded in October 2022, which amounts to 9% of the total day and night trading volume in the same month.

On 1 December 2022, the After-Hours Trading session recorded the highest daily volume with 19,065 contracts traded on the Exchange.

This was largely due to growing interest among foreign market participants who contributed more than 50% of the night trading volume, while the domestic retail traders contributed approximately 30%.

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