SC: BURSA MALAYSIA DERIVATIVES TO RELAUNCH SSF CONTRACT IN 1Q

KUALA LUMPUR, March 20 (Bernama) -- The Single Stock Futures (SSF) contract is targeted for a relaunch by Bursa Malaysia Derivatives in the first quarter of 2025 (1Q 2025), according to the Securities Commission Malaysia (SC).

In its Annual Report 2024 released today, the SC announced several modifications, including increasing the number of eligible underlying stocks from 10 to 30 and incorporating all FBM KLCI constituents.

The SC emphasised that the modifications were part of an initiative to revamp and generate vitality in the SSF contract. 

"The spectrum of changes is meant to enhance the attractiveness of the contract, especially for retail participants. Retail investors can use the SSF to hedge their stock portfolios or capitalise on trading opportunities, allowing for greater flexibility and risk management," the SC said. 

Other modifications include reducing the contract size of SSF to accommodate retail participants, from 1,000 shares per contract to 100 shares per contract.

The revamped SSF contract would also involve lowering trading and clearing fees to a flat fee of RM1 from a tiered basis based on the price of the SSF.

It will also involve modification to the speculative position limit and changes to the treatment when there is corporate action on the underlying securities. 

"By attracting this growing segment of the market, the initiative could enhance market breadth and depth, fostering a more diverse and resilient trading environment," it added.

-- BERNAMA