This is in line with the amendments to Guideline 3 of the MDEX Business Rules which came into effect on 28 December 2001. Making commission rates fully negotiable is part of the recommendation in the Capital Market Masterplan to enhance the competitiveness of the derivatives market.
The commission rates with effect from 28 December 2001 are as follows:
|
MDEX CONTRACTS
|
BEFORE 28 DECEMBER 2001
|
AS OF 28 DECEMBER 2001
|
| KLSE CI Futures | Minimum RM 50 per contract |
Commission rates for all contracts
fully negotiable. |
| KLSE CI Options | Minimum RM 50 per contract | |
| Crude Palm Oil Futures | Fully Negotiable | |
| Three- Month KLIBOR Futures | Fully Negotiable |
Additionally, the following rates have also been made fully negotiable
with effect from 28 December 2001:
· Clearing commission rates
· Shared commission rates between futures broker's representative
and its trading member
· Shared commission rates between trading members and institutions
Details of the rates are as follows:
· Clearing Commission Rates
Before 28 December 2001, the clearing commission rates charged by Trading Members were only fully negotiable for Local Members. With effect from 28 December 2001, the clearing commission rates charged by Trading Members are fully negotiable for members and clients.
|
MDEX CONTRACTS
|
BEFORE 28 DECEMBER 2001
|
AS OF 28 DECEMBER 2001
|
|
|
Contract
|
General Clearing Commission
|
Commission rates for all contracts
fully negotiable
|
|
|
Overnight trades
|
Day trades
|
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|
KLSE CI Futures
|
RM20 |
RM10
|
|
|
KLSE CI Options
|
RM20
|
RM10
|
|
|
Three-Month KLIBOR Contract
|
Negotiable unless otherwise determined
by the Board in consultation with the Commission
|
Negotiable unless otherwise determined
by the Board in consultation with the Commission
|
|
|
Crude Palm Oil Futures Contract
|
Negotiable unless otherwise determined
by the Board in consultation with the Commission
|
Negotiable unless otherwise determined
by the Board in consultation with the Commission
|
|
· Shared Commission Rates Between Futures Brokers Representative and its Trading Member
|
BEFORE 28 DECEMBER 2001
(FOR KLSE CI FUTURES & KLSE CI OPTIONS) |
AS OF 28 DECEMBER 2001
|
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|
Commissioned Registered Representative's
Share
|
Nominating Trading Member's Share
|
||||||
| Not more than 40% of the general brokerage commission or the discounted brokerage commission whichever is charged to the Client. | Not less than 60% of the general brokerage commission or the discounted brokerage commission whichever is charged to the Client. | Commissioned registered representatives shared commission rates for all contracts are fully negotiable. | |||||
· Shared commission rates between trading members and institutions
|
BEFORE 28 DECEMBER 2001
(FOR KLSE CI FUTURES & KLSE CI OPTIONS) |
AS OF 28 DECEMBER 2001
|
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|
Trading Member's Share
|
Non-Trading Member's Share
|
||||||
| Not less than 40% of the general brokerage commission or the discounted brokerage commission whichever would ordinarily have been charged to the stated institution. | Not more than 60% of the general brokerage commission or the discounted brokerage commission whichever would ordinarily have been charged to the stated institution. |
Shared commission rates between Trading Members and institutions for all contracts are fully negotiable. |
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