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Development of Derivative Market in India China and Malaysia

In: Other Topics

Submitted By suehuey96
Words 1002
Pages 5
1.0 Introduction
Asian equity markets are sizable, expanding and fast growing. Asia specific derivative market has hold nearly 40 percent of world capitalization in 2015 and having annual volume of 9.7 Billion. Markets in countries like Japan, Korea, Malaysia, China, India and Korea are also sizable. Indian, China and Malaysia were second tier exchange in derivative market but growing rapidly.
2.0 Development of Derivative Market
2.1 Malaysia
Malaysia start joining the derivative market trading community in October of 1980’s with the launched of crude palm oil futures at Kuala Lumpur Commodity Exchange (KLCE). KLCE was known as the first futures exchange in Malaysia and all of Southeast Asia, established in 1980. In December of 1995, Kuala Lumpur Options and Financial Future Exchange (KLOFFE) were officially licensed as a futures and options exchange, and trading on in its flagship stock index futures. In December 1998, KLCE and Malaysia Monetary Exchange (MME) were merged to establish Commodity and Monetary Exchange of Malaysian (COMMEX). Shortly after, in January 1999, KLOFFE became subsidiary of Kuala Lumpur Stock Exchange (KLSE). In June 2001, KLOFFE merged with COMMEX and form Malaysian Derivative Exchange (MDEX). Later Bursa Malaysia Derivative Berhad has listed in 2005.
2.2 China
In 1980’s the relevant department study abroad to prepare and actively preparing for China's futures market .The China Zhengzhou Grain Wholesale Market, was the first commodities futures market opened at China in 1990 October. Due to the reason lack of unified management and understanding in future market and issues like illegal trading, market manipulation, China's futures market is in disarray. In 1993 China state council started to regulation it’s future market by standardize the market operations to clean up the futures brokerage firm, strengthen supervision and improve…...

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