KUALA LUMPUR – Bursa Malaysia Derivatives Bhd has launched its first nationwide Derivatives Virtual Trading Challenge, aiming at developing interest about the Malaysian derivatives market among millennials.
Chief executive officer Samuel Ho said the exchange has seen strong growth in derivatives trading in recent years with trading volume increased to 18.2 million contracts in 2020 from 13.5 million contracts in 2019, recording a 35% year-on-year growth.
“Retail participation grew to 32% as of August 2021 from 25% in 2019. These milestones indicate growing interest among retail investors in diversifying their investment portfolios with alternative asset classes such as derivatives,” he said in a statement on September 22.
Meanwhile, the exchange said the challenge would provide essential knowledge to new investors to start trading derivatives in an informed manner.
It said participants would compete via the BursaMKTPLC Derivatives Trading Simulator in a simulated environment that replicated live futures markets.
“Each participant will be given an account with RM100,000 virtual capital to trade in four existing derivatives products offered by Bursa Malaysia Derivatives, which are the Crude Palm Oil Futures (FCPO), the FBM KLCI Index Futures (FKLI), the FBM Mid 70 Index Futures (FM70) and the 5-Year Malaysian Government Securities Futures (FMG5) Contracts,” it said.
It said the top 15 participants with the highest account balance at the end of the challenge would be rewarded with prizes worth RM20,000 with the first prize winner would stand to win a RM7,000 cash prize.
Registration for the challenge will be opened from September 22 to November 5, 2021 to eligible Malaysians aged 18 and above and the challenge will be commencing from November 15 to December 14, 2021.