Do you know? US Federal Reserve: Beyond setting policy rates, the Fed quietly provides large amounts of intraday credit—“daylight overdrafts”—to banks through their reserve accounts so payment and settlement systems like Fedwire can function smoothly, subject to caps and risk controls that most end users of the financial system never see. Equity Debt Digital assets…
Do you know? US Federal Reserve: In its early decades, the Fed did not just passively follow the gold standard but actively pioneered open market operations—large‑scale purchases and sales of government securities—as a macroeconomic stabilisation tool, notably in the 1920s when the New York Fed used them aggressively to fight recession and later to lean…
Do you know? US Federal Reserve: One of the most unusual features of the Federal Reserve is its hybrid public‑private structure: the Board of Governors is a federal government agency, but the 12 regional Reserve Banks are separately incorporated institutions whose shares are owned by private member banks, which must subscribe capital equal to a…
Do you know? US Federal Reserve: The basic blueprint for the Federal Reserve was developed in near secrecy at a 1910 meeting on Jekyll Island, where Senator Nelson Aldrich and leading financiers drafted what became the Aldrich Plan, whose core ideas on a central bank with a Washington head office and multiple regional branches heavily…
Do you know? Market making: Market makers are not forced into dangerous trades. They can widen spreads or temporarily reduce activity during extreme volatility. Market making is a highly attractive, low-risk, high-volume trading model because of spread income, incentives, hedging strategies and risk controls. Equity Debt Digital assets M&A Malaysia Other markets
Do you know? Market making: Their technology gives them a statistical edge. High-speed algorithms update prices, manage inventory, and capture tiny, consistent profits. The combination of automation, speed and scale lets them operate profitably even when margins are thin. Equity Debt Digital assets M&A Malaysia Other markets
Do you know? Market making: Market makers minimise risk by hedging, often using correlated instruments, futures of different maturities or related commodities. This allows them to quote continuously without relying on directional bets, making the business more systematic than speculative. Equity Debt Digital assets M&A Malaysia Other markets
Do you know? Market making: Exchanges reward market makers through rebates, fee discounts and liquidity incentive programmes. Bursa Malaysia Derivatives, like other exchanges, pays these incentives because tight, continuous quotes attract more participants and stabilise the market. Equity Debt Digital assets M&A Malaysia Other markets
Do you know? Market making: Market makers earn from the bid-ask spread, which is the small price difference between buying and selling. Each trade earns only a little, but with high volume and constant order flow, these small profits accumulate into substantial revenue. Equity Debt Digital assets M&A Malaysia Other markets
Do you know? Bursa Malaysia Derivatives (BMD): Market participants include (1) hedgers, e.g. plantation companies, fund managers and banks, (2) speculators who trade to profit from price movement, and in return, they provide liquidity to the market, (3) arbitrageurs who exploit price differences between the futures and physical markets, and (4) proprietary traders and market…