Products
FTSE Bursa Malaysia KLCI Options (OKLI)
OKLI is a Ringgit Malaysia ("MYR") denominated Options Contract on FTSE Bursa Malaysia Kuala Lumpur Composite Index Futures (FKLI) traded on Bursa Malaysia Derivatives. It is a versatile risk management tool for industry participants to meet their trading, hedging and risk management needs in managing equity portfolios.
Contract Specifications | |
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Contract Code | OKLI |
Underlying Instrument | FBM KLCI Futures (FKLI) |
Contract Size | One FKLI contract |
Contract Months | Spot month, the next month and the next two calendar quarterly months. The calendar quarterly months are March, June, September and December. |
Trading Hours | Monday to Friday (Malaysia time)
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Pricing Unit | Malaysian Ringit (MYR) |
Minimum Price Fluctuation | 0.1 index point valued at MYR 5 |
Final Trading Day | The last business day of the contract month. |
Settlement of Option Exercise | In the absence of contrary instructions delivered to the Clearing House, an option that is in-the-money at expiration shall be automatically exercised. Exercise results in a long FKLI position, which corresponds with the option’s contract month for a call buyer or a put seller, and a short FKLI position for a put buyer or a call seller. The resultant positions in FKLI shall then be cash-settled based on the final settlement value of FKLI. |
Option Type | European Options |
Why Trade OKLI? |
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- Global Access
OKLI is traded electronically on CME GLOBEX®, a global electronic trading platform. Accessing CME Globex® is easy and it allows individual and professional traders anywhere around the world to access all Bursa Malaysia Derivatives products.
- Portfolio Hedging and Risk Management
Market participant can use OKLI alongside FKLI and other derivative tools to formulate their risk management strategies. OKLI is a versatile tool for market participants to meet their trading, hedging and risk management needs in managing equity portfolios.
- Portfolio Yield Enhancement
OKLI can be used as an instrument for portfolio yield enhancement. Institutional users such as fund managers, insurance companies and other financial institutions can use covered options to capitalise on different market conditions and enhance returns without interrupting the existing investment portfolio.
- Leverage and Predetermined Risk for Buyer
OKLI buyer generally pays a relatively small premium for market exposure in relation to the contract value. An investor who bought OKLI contract can see large percentage gains from relatively small, favorable percentage moves in the underlying futures. If the underlying futures price does not move as anticipated, the buyer's risk is limited to the premium paid. Writers of OKLI, on the other hand, bear substantially greater risk, if not unlimited.
- Regulated Trading
Trade with confidence in a secure and transparent marketplace regulated by the Securities Commission Malaysia.
Resources for Download |
Performance Bond / Margin Rates
Contract Specifications
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