Application Procedures for Trading on Specified Exchanges
1.1 Pursuant to section 102 of the Futures Industry Act 1993 (FIA), a futures broker or futures fund manager shall not trade overseas unless -
(a) the futures market is a futures market of a Specified Exchange; and
(b) the futures contract is of an approved class of futures contracts.
1.2 This document sets out the procedures for futures brokers and futures fund managers prior to trading in futures contracts, or in any class of futures contracts on the futures market of a Specified Exchange.
1.3 For the purpose of trading on Specified Exchanges, the futures broker or futures fund manager shall -
(a) become a Participant of the Specified Exchange
(b) appoint at least one foreign broker for execution of orders and clearing of futures contract on the Specified Exchange
2.0 APPLICATION PROCEDURES
2.1 Prior to trading on a Specified Exchange, a futures broker or futures fund manager must submit the following information to the CODT:
(a) A cover letter for the application to trade on Specified Exchange(s);
(b) Information as set out in FORM A;
(c) A copy of the signed agreement with the executing and clearing broker in relation to margins, deposit or other related matters on trading on Specified Exchange(s), including the provision of information by the foreign broker(s) to the CODT as may be required from time to time; and
(d) Payment of RM100,000 as deposit or such other amount as may be determined by the CODT as required under section 103 of the FIA.
Any material changes in the information submitted including any inclusion of additional contract(s)/Specified Exchange(s) shall be notified to the CODT.
2.2 All applications and enquiries for investing on Specified Exchanges should be made to the following:
2.3 Upon approval being granted by the CODT, futures brokers shall notify the Intermediary Affairs, Intermediary Supervision Department of Bursa Malaysia in writing of its intention to trade on the Specified Exchange(s) with a copy of the notification to the CODT.
2.4 Futures brokers are required to submit the information as required in FORM B on a semi-annual basis. Futures fund managers are to submit the same information when submitting the semi-annual reports as stipulated in the Guidelines on Reporting Requirements for Fund Managers.
2.5 These reports shall be addressed to CODT's Licensing Department and must be received within 14 working days of the end of each semi-annual period. The semi-annual periods shall end on the 30 June and the 31 December of each year.
2.6 The CODT may seek further clarification, information or documents from the applicant and that the approval of the CODT under these guidelines may be given subject to conditions as the CODT sees fit.