Encik Abdul Jabbar Abdul Majid Executive Chairman of Malaysia Derivatives Exchange (MDEX) said that the deferment is to allow for more time and opportunity to further review market conditions and readiness before the introduction of SSF.
"In order to derive the full benefits of introducing SSF, it is best to defer the launch of SSF for the moment.
"Notwithstanding this, we will continue to work with all relevant parties to ensure that the effort to add breadth and depth to the range of products offered by MDEX will continue," he said.
Abdul Jabbar added that industry training and education on derivatives products of MDEX will continue to be conducted to meet the longer term objective of enhancing understanding, awareness and participation in derivatives investment.
"Derivatives provide expanded opportunities for risk management and hedging for market participants.
"The uses and benefits of participating in derivatives trading are applicable to various participants of the capital market including financial institutions, insurance companies, bond portfolio managers, provident funds, asset managers, corporate treasurers, or individual investors and MDEX local members.
"Additionally, derivatives investment also attract a large following from the general investing public as awareness and understanding of derivatives continue to improve," Abdul Jabbar said.
To date, the range of products offered by MDEX include Crude Palm Oil Futures (FCPO), KLSE Composite Index Futures (FKLI), the Three-Month Kuala Lumpur Interbank Offered Rate (KLIBOR) Interest Rate Futures (FKB3) and the Five-Year Malaysian Government Securities Futures (FMG5).
