A trading agent license may be granted to any person, individual or corporation who is experienced in the trading of financial instruments and considered suitable and appropriate by the Exchange, provided its net assets must exceed the amount specified by the Exchange Committee which is USD1 million. A trading agent is also required to obtain a professional indemnity insurance of USD5 million.
Applications for a trading agent's license is subjected to a non-refundable application fee of USD1,000.00 whilst an initial fee of USD10,000.00 would be imposed upon approval of the license. The annual renewal fee for the license is USD5,000.00.
Applicants for Trading Agents status are required among others to have the necessary experience and capabilities to undertake trading of securities.
The onus would be on the applicant to prove to LFX his/her related experience in the trading of financial instrument. The applicant must be able to furnish details of his/her related background. Referees may also be required to support the application and written testimonials from prominent person in the industry would be given due consideration.
Application for licenses can be initiated via the @LFX system available on our website, www.lfx.com.my. However, LFX still requires all hard copies of application documents to be mailed as the technology regarding digital signatures are still considered not secure.
At present LFX is accepting hard copy submission for both Listing Sponsor & Trading Agent license applications.
The criteria for a listing sponsor and trading agent license are different. However, it is possible to apply for both licenses simultaneously and two separate licenses will be issued provided all relevant criteria are fulfilled.
An organisation can hold both licences simultaneously as these involve two different functions. Please note that two separate fees will be levied accordingly.
No examinations are required for those wishing to conduct trades on LFX. All individuals who wish to conduct trades on LFX will be under the sole discretion of the trading agent licence holder. The licence holder will nominate the persons authorised to perform trades on LFX on behalf of investors and issue them with the required passwords and user IDs. LFX does not regulate back office matters of the trading agents.
This insurance is a form of investors' protection and also to indemnify LFX against any third party claims that may be made by aggrieved investors.
This would depend on the insurance brokers concerned who would perform their own risk analysis subject to the applicants risk profile.
There is no readiness audit necessary for trading agents prior to commencement of trading activity. However, for Bursaâ€™s member companies, this matter might be subject to SC's approval.
Local SBCs can be Listing Sponsors through their Corporate Finance departments.
There is no prohibition as long as the criteria set by LFX are met and the approval of the governing authorities is obtained.