The "Locals" or the so called licensed speculators were given seats by the "ex" Bursa Malaysia Derivatives through the purchasing of trading permits or "memberships" at RM10,000 or RM30,000 in the 1990s when the BMD was mainly from the two separated entities, KLCE and KLOFFE. I was a Local in CPO Futures trading and did pay the RM10,000 to start trading with the trading permit after being interviewed and approved by the Board from KLCE.
Just for a record, the KLCE was last located in DayaBumi Complex near Dataran Merdeka before the open-outcry trading system was ended in December 2001. Here is the sample contract form issued by all floor traders in the cpo futures trading pit. It showed the Alpha code of Seller and Buyer while stating all the contract month in the International code format, price and size with time stamped to confirm the trade was done at the particular time. As shown below, the month codes and trading copies with time stamped on 27 Dec 2001:
| MONTH | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | ||
| CODE | F | G | H | J | K | M | N | Q | U | V | X | Z | ||
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| KLCE trading contract copies |
The yellow copy was the seller's copy and seller must do time stamping once a trade was traded and issued a carbonized trading form that contained total five copies. First original white copy for KLCE, two duplicated yellow copies (for seller's clearing broker and seller) and two duplicated red copies (buyer's clearing broker and buyer).
The "Locals" did enjoy low transaction cost and even zero transaction cost on scratch trades which meant when they buy and sell price at same price in different transaction in same trading day, they paid zero fee. These scratch trades did save a lot of trading cost especially for locals who active in spread trading while helped increasing the liquidity of the cpo futures market.
The "Locals" did enjoy low transaction cost and even zero transaction cost on scratch trades which meant when they buy and sell price at same price in different transaction in same trading day, they paid zero fee. These scratch trades did save a lot of trading cost especially for locals who active in spread trading while helped increasing the liquidity of the cpo futures market.