KUALA LUMPUR: Kenanga Deutsche Futures Sdn Bhd (KDF) expects a double-digit growth in derivatives contracts traded on Bursa Malaysia Derivatives Bhd (BMD) this year as more online platforms become available in the market, making it easier to trade.
Chief executive officer and listed derivatives head Azila Abdul Aziz said after BMD introduced online market access in 2010, the listed derivatives market recorded a compounded annual growth rate of 18 per cent for the last five years.
Prior to that, she said the derivatives market was trading at about six million contracts.
“Four years after the introduction of the electronic trading platform, BMD has doubled its volume to 12 million contracts and it has grown to 14 million now. This is a tremendous improvement, with a compounded annual growth rate of more than 18 per cent in the past five years.
“This year, we are looking at the same double-digit growth,” she said in an interview recently.
KDF was last year named the “Best Derivatives Trading Broker” and “Best Trading Broker — Equity Derivatives” by BMD.
The firm has won the accolades for 13 consecutive years.
Azila said of the 14 million derivatives contracts traded last year, KDF accounted for 15.21 per cent of the execution market share.
She said to stay ahead of the game, the company would continue to expand its clientele base, which stood at 65 per cent foreign participation and the rest domestic participation.
It would also continue to innovate and ride on the latest technologies.
The company has successfully deployed KDF TradeActive, its first real-time customised online order management system for trading listed derivatives.
KDF TradeActive leverages on Bloomberg’s Realtime Systems (RTS), a technology provider of a high-performance trading and robust algorithmic trading platforms widely used by international brokers for trading in global markets.
KDF is the first company in the country to deploy the RTS platform for its clients to access and trade BMD-listed products.
Azila said KDF continued to focus on its customers and respond to emerging opportunities more rapidly.
“The deployment of KDF TradeActive would enhance our direct market access offerings.
“Such initiative would place the company in a logical progression towards embracing financial technology amid the changes in the derivatives landscape,” she added.