The eligibility requirement to become futures broker representatives of Bursa Malaysia Derivatives (BMD) under the Dual Licensing Fast Track (DLFT) programme has been further eased from 10 to 5 years of experience, subject to dealer representatives attending an additional 2-day familiarisation program. The extension of the DLFT programme will be for another two years until June 2014. The previous participation criteria requiring candidates to have at least 10 years of experience and attendance of a 4-day familiarisation program will remain, for the more experienced dealer representatives.
Dato' Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Chairman of Bursa Malaysia Derivatives said, "The Exchange is continuously engaged in efforts to create a more facilitative trading environment. With the relaxation to 5 years, Bursa Malaysia is looking forward to dealer representatives coming forward to dual qualify themselves through this scheme, offering derivatives along side with equities as a complete portfolio to their clients, both as a trading and hedging tool".
"With the easing of the eligibility requirement, we expect dealer representatives who are at their initial years of trading to capitalise on this opportunity and include derivatives in their offering, and this will facilitate greater market liquidity. Bursa Malaysia Derivatives should be commended for taking the initiative to improve the vibrancy of the Malaysian capital markets." said Mr N.Rajan, President of the Malaysian Futures Brokers Association.
The DLFT programme which is jointly organised by the Securities Industry Development Corporation (SIDC) and BMD was initiated in June 2011. It is designed for Capital Market Services Representatives License holders to achieve dual licence status for dealing in securities and trading in futures contracts.
The additional two-day familiarisation programme will cover product knowledge, clearing & settlement and risk management. Participants of the programme should be able to know hedging and arbitraging strategies on the trading of commodity, equity and financial derivatives on BMD, upon completing the programme.