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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…
Do you know? Bursa Malaysia Derivatives (BMD): Settlement for commodity futures rarely occurs by physical delivery. Mostly, traders offset their position before expiry. Settlement for financial futures is cash-settled based on the underlying index. Equity Debt Digital assets M&A Malaysia Other markets
Do you know? Bursa Malaysia Derivatives (BMD): A trader must open an account with a trading participant (broker). Orders are entered electronically into CME Globex. The electronic order book matches buy and sell orders using price–time priority. Once matched, the clearinghouse becomes the counterparty to both buyer and seller, and Both sides’ margin accounts are…
Do you know? Bursa Malaysia Derivatives (BMD): The trading ecosystem consists of (1) the exchange, which provides the listing, trading rules and electronic trading platform; uses CME Group’s Globex system for electronic matching; and sets contract specs, and (2) the clearinghouse, which acts as the central counterparty (CCP) to all trades, guarantees settlement even if…
Do you know? Bursa Malaysia Derivatives (BMD): It operates Malaysia’s regulated derivatives market by providing a platform where participants trade futures and options contracts, primarily for hedging and speculation. The products traded are primarily commodity derivatives, i.e. palm oil futures, and financial derivatives, e.g. FTSE Bursa Malaysia KLCI index futures. Equity Debt Digital assets M&A…