20080323 At the ATIC 2008 (Asia Trader and Investment Convention) Aminvestment Bank had a demonstration of it's front end Trader Connect, a DMA (Direct Market Access) solution for derivatives trading of Bursamalaysia futures and options contracts. Indications are that there will be an official launch in the next 1 to 2 months, and currently they are accepting indications of interest to open account to trade futures contracts through DMA.

This is the first step in makeing the move up to more liquid and mature markets. Commission rates will go down to as low as RM10 for retail customers. Hopefully the 'big bang' which has eluded Malaysian markets due to lack of foresight by the old administration's outdated thinking will hit the markets on Bursamalaysia.


What is more exciting is that the platform will eventually be able to offer multiple DMA access to other market centres such as CME, HKFE, SGX etc. Traders will be able to access international markets through a single terminal.
So call up Aminvestment Bank futures division and register your interest, whether it be retail or local participants and make a difference.

No more 70% tax exemption on profits accruing to Local Participants

A situation has arisen whereby the following is occuring that might impact the trading in futures contracts by Local Participants:

1. The Ministry of Finance has not renewed the 70% tax exemption for profits made by Local Participants trading on own account on Bursamalaysia.
2. The Exchange is now appealing on behalf of Locals to reinstate the tax incentive.
3. Many 'big kaki' have expressed the disincentive of higher tax as making the business of trading on own account as Locals not viable.
4. Does not the Capital Market Masterplan call for development of the capital markets, of which derivatives are a part? Without tax incentives, Locals may drop out of the market, henceforth reducing the depth and liquidity of the market.
5. Why the MoF are hawking on the maybe RM2m in tax for locals, whereby they can forgo the Real Property Gains Tax (RPGT) in billions of ringgit. Is it a case of robbing the poor to give to the rich?
6. In fact trading is a risky game involving potentially huge losses, so there should be no tax on CAPITAL GAINS, which is what profits from trading futures contracts are. Stock operators reap billions from goreng stock and are tax free....

Hopefully sanity prevail and the right course of action comes about.

Coming to proposed launch date Nov 5 for DMA

Well, the Bursa website section on DMA has gone off the map. Maybe they are waiting for confirmation that DMA will truly go ahead. Let's hope so, with no more delays....