KUALA LUMPUR, Dec 2 — Bursa Malaysia Derivatives Bhd will extend its after-hours (T+1) trading session for selected derivatives contracts to 2.30am every Monday to Thursday from the current after-hours trading session at 9pm to 11.30pm effective December 5, 2022.

In a statement today, it said the extension offered market participants the opportunity to narrow price gaps and adjust their risk exposure when trading derivatives contracts that are reactive to international market news and events.

Acting director of Bursa Malaysia Derivatives Mohd Saleem Kader Bakas said market participants who are trading contracts like the newly enhanced Gold Futures (FGLD) would benefit from this extension as the price of gold in the spot market is highly correlated with the United States market news.

"Macro events contribute to price volatility. With this, traders would be able to mitigate the price gaps between our closing market prices and the following day’s opening prices,” he said.

The exchange said derivatives contracts that would be available to trade during the after-hours trading session until 2.30am were FTSE Bursa Malaysia KLCI Futures (FKLI), Options on FTSE Bursa Malaysia KLCI Futures (OKLI), Mini FTSE Bursa Malaysia Mid 70 Index Futures (FM70), FGLD, USD Tin Futures (FTIN) and the 3-Month Kuala Lumpur Interbank Offered Rate (KLIBOR) Futures (FKB3).

However, it said there was no change to the existing after-hours trading session for Palm Derivatives contracts that end at 11.30pm.

Meanwhile, the exchange said monthly trading volume has risen nearly three times from 51,513 contracts in December 2021 to 142,972 contracts in October 2022, which amounts to nine per cent of the total day and night trading volume in the same month.

It said the after-hours trading session recorded the highest daily volume with 19,065 contracts traded on the exchange on December 1, 2022.

"This was largely due to growing interest among foreign market participants who contributed more than 50 per cent of the night trading volume while the domestic retail traders contributed approximately 30 per cent,” it said.

Investors who are interested to learn more about after-hours trading could visit www.bursamalaysia.com for more information. — Bernama