KENANGA Deutsche Futures Sdn Bhd (KDF) wants to expand its trade market share on the Bursa Malaysia derivatives market, as more clients show interest in leveraging on the direct market access mechanism.
KDF chief executive Azila Abdul Aziz said the company had consistently chalked up close to 1.5 million contracts on the derivatives market, making up around 14 per cent of the total trade of 9.6 million contracts.
In an interview with Business Times here, she said more funds are starting to use futures as a tool to hedge their investment exposure.
A more specific example would be the equity index futures.
The market currently trades less than one time of its underlying stock/equities market value. In other regional markets, futures trade three to five times more than its underlying value.
"We see potential growth in attracting liquidity by leveraging on technology to improve market access," she said.
KDF's reputation as the leading futures broker in Malaysia was reaffirmed by Bursa Malaysia last week when it won the best performer award at the Palm and Lauric Oils Outlook Conference.
KDF is the top overall performer for 10 years in a row in attracting the biggest trades into Bursa Malaysia Derivatives Exchange.
Asked on factors that had driven consistent achievement, Azila attributed it to clients' long-term rapport and strategic partnership with Deutsche Asia Pacific Holdings, which instantly raise the group's profile among potential investors in the region.
"Our best clients tomorrow are the ones that are happy with us today," Azila said, adding that human capital investment is also a key success factor.
"We need to constantly keep up with changing market conditions. We hire candidates equipped with the right technical skills unique to the futures broking industry.
"We also carry out an internal one-year management trainee programme that includes one-on-one mentorship and training by four highly experienced business managers. KDF employees are highly sought after by the industry, so we have to ensure that we retain our valuable talent," she added.
On the outlook for the year, Azila said direct market access capabilities will help to improve and increase the number of products available for trading here.
"Technology will be the key enabler that drives volume growth, improve liquidity and governance," she said.