The KLSE C1 is the first exchange traded options contract in Malaysia and is based on the benchmark index KLSE C1, which is made up of the 100 largest publicly listed companies on the main board of Kuala Lumpur Stock Exchange KLSE. Companies on the KLSE include Telecom Malaysia, Tenaga Nasional, Sime Darby and Malayan Banking.
The company expects that the product will provide an additional risk management tool, increasing opportunities for hedging, arbitraging and speculating for a wilting Malaysian equity market affected by selective capital controls.
There are no direct capital controls on derivatives, but selective capital controls have affected the equity and cash market. If investors don't want to be...
