RM12.1m worth of gold traded on FGLD's first day
KUALA LUMPUR: Some RM12.1 million worth of gold was traded on Bursa Malaysia Derivative's Gold Futures (FGLD)'s maiden trading day yesterday.
The RM12.1 million is equivalent to some 90.2kg of gold based on the current market price of the commodity.
FGLD's contract size is in 100 grammes and the last trading day is set as the last common business day of the contract month in both London and Kuala Lumpur.
The is because the base value of the gold price is based on London Fix Gold Specifications, and as such, the final settlement price will be according to the London AM Fix (which is in US dollar/ troy ounces) on the last trading day and will be adjusted to conversion into ringgit per gramme.
Some 902 lots changed hands on the FGLD yesterday, with trades mostly building steam much later in the day.
In the first 20 minutes of trading, only 44 lots were traded, while the futures market for FGLD saw some 371 lots exchanging hands for the month of October. For the December futures, 531 lots were traded, information obtained from the exchange shows.
The first trading day also saw 64 trading accounts participating in active trade, with the appointed market makers accounting for more than half of the trades.
Bursa Malaysia ranked the dominant players in the market as being Appointed Market Makers (56 per cent); Domestic Retail/Locals (23 per cent); Foreign Institutions (11 per cent) and Domestic Institutions (10 per cent).
The gold futures index, aims to provide investors a safe, regulated environment, as all trades are guaranteed by the Bursa Malaysia Derivatives Clearing House.
At the launch of FGLD last week, Datuk Tajuddin Atan, chairman of Bursa Malaysia Derivatives and chief executive officer of Bursa Malaysia , had said the plan was to create a comprehensive marketplace.