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Mahamad Rodzi Abdul Ghani




Mahamad Rodzi Abdul Ghani





Cross Trading Will Provide Greater Liquidity, Says
KUALA LUMPUR, June 13 (Bernama) -- Malaysia Derivatives Exchange Bhd(MDEX) is considering the cross trading of derivative products with otherexchanges in the region in order to provide greater liquidity anddiversity of derivatives products.Cross trading is an effective option for regional derivatives exchanges toconsider in expanding investor interest in regional derivative products,MDEX chief operating officer Dr Zaha Rina Zahari said.

"It is certainly in the interest of MDEX to continue to consider strategicalliances, including cross trading of products, with regional exchanges toexpand business growth.

"Cross trading between suitable exchanges would result in mutual benefitsfor the exchanges concerned," Dr Zaha Rina said in a statement Thursday.

"MDEX needs to deliberate carefully on the effectiveness of cross trading,in terms of the market we are entering into and also the products which wewill include on our market," she said.

Commenting on a recent media report on the possibility of cross trading offutures products between Indonesia and Malaysia, Dr Zaha Rina said initialdiscussions with the Jakarta Futures Exchange (JFX) have started, but itwas too early to draw any conclusions.

Dr Zaha Rina added that initial meeting will pave the way for furtherdiscussions on the viability for MDEX to trade JFX's Olien Contracts andin return, to have MDEX's Crude Palm Oil futures to be traded on JFX.

"We will need to examine how cross trading with JFX will enhance value forboth our markets," she said.

Products currently traded on MDEX are the Kuala Lumpur Stock ExchangeComposite Index Futures, Kuala Lumpur Stock Exchange Composite IndexOptions, Crude Palm Oil Futures and three-month KLIBOR Futures and theFive-Year Malaysian Government Securities. -- BERNAMA