Dr Zaha Rina Zahari, Chief Operating Officer of MDEX said that the introduction of the Single Stock Futures contracts will add depth to the present range of products offered by the derivatives exchange.
"The first tranche of the SSF contracts will be launched in the first quarter of 2003. Each contract of the SSF contracts will be based on 1,000 shares with minimum price fluctuation of 0.02 or RM20.00. With this, investors should be able to derive value even within one to two movements in the price of the contract.
"MDEX has obtained approval in principle from the Securities Commission (SC) on 16 January 2003 and is currently working towards the implementation of joint integration test and market simulation which will take place from January to March," she said.
The final approval for the launch of the SSF will be obtained upon completion of these relevant exercises and inspections by the SC and the KLSE Group Internal Audit Department.
SSF will be traded from Monday to Friday, from 8.45am to 12.45pm and 2.30pm to 5.15pm on KATS, the Automated Trading System of MDEX futures brokers. SSF will be cash settled using the weighted average price of the stock on the last business day of the contract.
"This contract is especially targeted to retail investors as well as financial institutions, portfolio managers, provident funds, asset managers, and MDEX local members. This new product will help boost the liquidity of both the stock and derivatives market," Zaha Rina said.
