This initiative commenced with the signing of the Memorandum of Understanding between Kuala Lumpur Stock Exchange (KLSE) and COMMEX in March this year, for COMMEX to join the KLSE Group.
KLSE is the ultimate holding company of KLOFFE. KLOFFE currently provides trading in index futures and options products based on the KLSE Composite Index. Presently, COMMEX provides trading in crude palm oil futures and three months KLIBOR interest rate futures contracts.
The signing of the merger agreement is a significant step in progressing the consolidation of exchanges as an effective way of achieving optimum utilisation of resources and economies of scale. This would lead to greater efficiency and competitiveness in the securities industry.
The merger is subject to the approvals of the Minister of Finance, Securities Commission and the Foreign Investment Committee.
