Sunday, April 26, 2015

Bursa Malaysia Derivatives - 7

Go to Bursa Malaysia official website, there is a Derivatives page, we can find the market statistics section and get all kind of historical data on futures products traded in Bursa Malaysia Derivatives. There is an interesting page that tell us the market demography on cpo futures locals as shown below:

source: Bursa Malaysia
What was the percentage contributed by locals from the above table October 2014 to March 2015? More than 30% of the cpo futures total volume was generated by locals!

The memory of cpo futures open outcry in the KLCE... Local's vest:

The Local's Vest

Tuesday, April 21, 2015

Bursa Malaysia Derivatives - 6

The Sun Business on Thursday, September 21, 1999 with big font words on Locals stay away from trading floor...

Click It For Bigger View
COMMEX, MME, MDEX or KLCE, as I still like it most on the original name, was an open outcry trading exchange plus electronic trading in KLOFFE before taking over by Bursa Malaysia, and being named Bursa Malaysia Derivatives to manage all futures contracts in Malaysia as what we call it at present.

The "boycott" incident was happened before ending year 1999 where I was a very small player in the open outcry cpo futures trading pit, having bad time to survive but had to follow other locals in taking a long week off. No doubt the satisfaction was there seeing the "50%" drop of trading volume, I was told by locals that there were some locals who started trading again due to personal reasons, paging orders QUIETLY from their own broker houses...

Any way, it is already 16 years now; such memory may have been fading...especially the futures market is getting much bigger now a day but I think only half of those 40 over active open outcry locals who are still trading now and the other half had totally ceased to be locals or just seasoned players in this futures industry!

I did list down some active locals with 3-letter alpha codes out of more than 40 active locals in my first book - Trading Crude Palm Oil Futures @ Bursa Malaysia Derivatives. Readers who have the book can turn to the page and read about the locals.

All knew that if locals did not want to trade, they were the ones not making money...but, sometimes, this kind of demonstrating displeasure did help in waking up the relevant authorities to rectify injustice and acknowledge the locals' efforts in growing the futures industry.     

Friday, April 17, 2015

Bursa Malaysia Derivatives - 5

A Day Without Locals In KLCE

There was a day where all locals stayed away from the cpo futures floor trading:

Click It For Bigger View
This is a page that I got it from the Star Business on Thursaday, September 21, 1999. See what was the total open position? 6,968 contracts as compared to about 180,000 contracts now a day!

What was the volume? 517 lots! What happened to the open outcry floor trading on that day? 

As quoted in the Bernama, the market was dampened by a boycott on Commex when the call by local traders (who trade on their own behalf) for lower fees in the annual subscription was rejected by the Commex board, dealers said. (Commex was the ex-Bursa Malaysia Derivatives that we used to call KLCE before merging. There were names like MME, KLOFFE and MDEX too.)

I think the average daily volume for cpo futures trading was above 1000 lots when I was a floor trader before turning to be a "new and the last" local there, and such a volume was actually more than 50% drop not 35% drop as shown in the paper!

There will be another interesting page about the cpo futures trading floor at that time when all locals stay away from the cpo futures trading pit. It was about the "boycott"! Wait for a next post.