MALAYSIAN FUTURES AND OPTIONS ON CME GLOBEX ELECTRONIC TRADING PLATFORM

MALAYSIAN FUTURES AND OPTIONS ON CME GLOBEX® ELECTRONIC TRADING PLATFORM TABLE OF CONTENTS THE CHANGE Pg 1 PRODUCTS Pg 2 ADOPTING CME GLOBEX® FU...
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MALAYSIAN FUTURES AND OPTIONS ON CME GLOBEX® ELECTRONIC TRADING PLATFORM

TABLE OF CONTENTS THE CHANGE

Pg 1

PRODUCTS

Pg 2

ADOPTING CME GLOBEX® FUNCTIONALITIES: GLOBAL STANDARD

Pg 3

ADVANTAGE MALAYSIA

Pg 9

LICENSED TRADING PARTICIPANTS

Pg 11

FREQUENTLY ASKED QUESTIONS

Pg 13

ABOUT BURSA MALAYSIA

Pg 20

THE CHANGE WIDENING ACCESS More liquidity. More global appeal. More efficiency. Bursa Malaysia Derivatives’ futures products are now traded on the CME Globex® electronic trading platform. This platform provides traders direct connectivity as well as unparalleled access to Malaysia’s derivatives market.

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PRODUCTS WHAT WE OFFER Equity Derivatives Futures on the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FKLI) Options on the FTSE Bursa Malaysia Kuala Lumpur Composite Index (OKLI) Single Stock Futures (SSF)

Financial Derivatives 3-Month Kuala Lumpur Inter-Bank Offer Rate (KLIBOR) Futures (FKB3) 3-Year Malaysian Government Securities Futures (FMG3) 5-Year Malaysian Government Securities Futures (FMG5)

Commodity Derivatives Crude Palm Oil Futures (FCPO) Crude Palm Kernel Oil Futures (FPKO) USD Crude Palm Oil Futures (FUPO)

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ADOPTING CME GLOBEX® FUNCTIONALITIES: GLOBAL STANDARD TRADING STATES All Bursa Malaysia Derivatives (BMD) products trade each day through a series of “Trading States”:

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TRADING STATES DURATION BMD products use a standard duration for each Trading State:

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TRADING HOURS BMD products on CME Globex® trade according to the following schedule (Malaysian Time = GMT + 8 hours):

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MAJOR CHANGES The major changes in terms of the trading phases are: Market orders are not allowed in Pre-Opening phase Introduction of 30-second No-Cancel phase Session orders will be valid for the entire trading day No Pre-Closing Order cancellations allowed during Surveillance phase after market close

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MIGRATION TO CME GLOBEX® – CHANGES IN FUNCTIONALITY

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MARKET INTEGRITY CONTROLS CME Globex® Market Integrity Controls: Price Banding “With Protection” Orders Stop Spike Logic Price Limits Maximum Quantity Available Order Types: For full details please refer to the CME Globex® Reference Guide at http://www.cmegroup.com/globex/files/GlobexRefGd.pdf

MARKET INTEGRITY CONTROL VALUES Values for BMD products on CME Globex® at launch:

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ADVANTAGE MALAYSIA LATEST UPDATE MALAYSIA PROGRESSES INTO FTSE'S ADVANCED EMERGING STATUS IN FTSE GLOBAL EQUITY INDEX SERIES Global index provider FTSE Group (FTSE) announced on 23 September 2010 that Malaysia was being promoted to Advanced Emerging market status from the current Secondary Emerging market status in the FTSE Global Equity Index Series. The promotion to the Advanced Emerging status demonstrates that Malaysia has met FTSE's “Quality of Markets Assessment” criteria in that category. Malaysia will be moved from the FTSE Secondary Emerging Market Indices into the FTSE Advanced Emerging Market Indices, and all parent and sub-indices of these benchmarks, from June 2011.

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ADVANTAGES OF TRADING MALAYSIAN DERIVATIVES

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LICENSED TRADING PARTICIPANTS TRADING & ACCOUNT OPENING ENQUIRIES A : Equity Financial Participant B : Non-Equity Financial Participant C : Commodity Financial Participant

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Please download the latest list from www.bursamalaysia.com

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FREQUENTLY ASKED QUESTIONS 1. What is CME Globex®? CME Globex® is the trading platform of CME Group where all Bursa Malaysia Derivatives Bhd’s (BMD) products are now hosted and traded, following implementation of the Application Service Provider (ASP). BMD’s products have now migrated to the CME Globex® trading platform based in Chicago, USA. 2. What are the trading hours now that BMD’s products have migrated to the CME Globex® trading platform? The trading hours for all BMD’s products remain unchanged. 3. Are the market states in CME Globex® similar to the ones in the previous BTD platform? No, there are changes in market states. The changes are: Trading for the whole day is over one session instead of the previous platform's two sessions with a PAUSE state for the lunch break. There is no matching during this state but orders may be cancelled. There is no Pre-Closing state for either the lunch break or the end of day trading. There is a 30 seconds NO-CANCEL state just after the Pre-Opening and immediately before the Continuous Trading states.

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4. What is the purpose of the NO-CANCEL state? While in the NO-CANCEL state, traders may enter orders but cannot amend or delete orders. This may help to prevent price manipulation during the PreOpening state. 5. What can be done in the Surveillance Intervention state on CME Globex®? During this state, traders are allowed to delete their orders only. 6. What order types are available on CME Globex®? For trading of BMD products, the available order types are as follows:

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7. What order qualifiers are available on CME Globex®? CME Globex® provides the following order qualifiers: Day GTC (Good-Till-Cancel) GTD (Good-Till-Date) FAK (Fill-And-Kill) FOK (Fill-Or-Kill) 8. What are Market Order and Stop Order with Protection? Market orders at CME Globex® are implemented using a “Market with Protection” approach. Unlike a conventional Market order, where customers are at risk of having their orders filled at extreme prices, Market with Protection orders are filled within a pre-defined range of prices (the protected range). The protected range is typically the current best bid or offer, plus or minus the range for the product. If the entire order cannot be filled within the protected range, the unfilled quantity remains on the book as a Limit order at the limit of the protected range. Stop orders at CME Globex® are implemented using a “Stop with Protection” approach. Unlike a conventional Stop order, where customers are at risk of having their orders filled at extreme prices, Stop with Protection orders are filled within a pre-defined range of prices (the protected range). A Stop with Protection order is triggered when the designated price is traded on the market. The order then enters the order book as a Limit order with the limit price equal to the trigger price, plus or minus the pre-defined protected range. The protected range is typically the trigger price, plus or minus the range for that product. The order is executed at all price levels between the trigger and limit price. If the order is not completely filled, the remaining quantity rests in the market at the limit price. A buy Stop order must have a trigger price

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greater than the last traded price for the instrument. A sell Stop order must have a trigger price lower than the last traded price. 9. What is a Hidden Quantity (iceberg) Order? A Hidden Quantity (Iceberg) Order is an order type that allows a trader to control the manner in which he wants the order to be reflected in the market. For example, the trader may place an order for the quantity of 500 lots but only wanted to show to the market 100 lots each time. By using this order type, the first 100 lots will be shown to the market. Once the first 100 lots are fully matched, the next 100 lots will be entered into the market as a new order. This will continue until the order is completely filled. 10. What is Stop Spike Logic and how does it work? The CME Globex® trading platform is programmed to prevent the continuing execution of cascading stop orders that will cause excessive and improper price movement. The Trading Engine monitors if the triggering of a stop order or series of stop orders will result in matched prices exceeding the contract’s pre-defined values (typically the No Bust Range) from the price level that matching limit orders finished matching and caused the triggering of a stop order(s). Once the pre-defined values is exceeded, the contract will be placed in a reserved state, during which orders may be entered, modified or cancelled but not matched.

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11. Are there any forms of Risk Management Services available on CME Globex®? Yes. From the trading perspective, three types of services are available. They are: Cancel On Disconnect Drop Copy Globex Credit Control For a detailed description of each, kindly login to www.cmegroup.com

12. Are implied functionalities available on CME Globex®? CME Globex® supports implied pricing, which automatically identifies and creates additional possible spreads and outright orders based on placed orders. Implied IN orders are created when an implied bid on one outright contract month and an offer in another outright contract month create an implied order in the corresponding calendar spread with those two expirations. Implied OUT orders are created when the platform combines a spread order with an outright order in one of the spreads' individual contract legs to create an implied order in the other leg. 13. What is the purpose of Firmsoft? FirmSoft is a browser-based order management tool that provides real-time access to information on working and filled CME Globex® orders, across multiple firm IDs. FirmSoft provides important risk mitigation functionality during system failures.

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With FirmSoft, customers can view and cancel orders. FirmSoft users can view: Current order status Fill information, including partial fills and fills from mass quotes Cancel replace history CME Globex® timestamps If enabled to do so, FirmSoft users can cancel: An individual order A group of orders All working orders and mass quotes

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ABOUT BURSA MALAYSIA COMPANY PROFILE Bursa Malaysia Berhad is an exchange holding company under Section 15 of the Capital Markets and Services Act 2007. The fully integrated exchange offers equities, derivatives, bonds as well as Islamic services and operates an international financial exchange in Labuan. BURSA MALAYSIA DERIVATIVES BERHAD (BMD) is a wholly-owned subsidiary of Bursa Malaysia Berhad which provides, operates and maintains a futures and options exchange. Bursa Malaysia Derivatives Berhad operates the most liquid and successful crude palm oil futures (FCPO) contract in the world. In the last quarter of 2009, BMD entered into a partnership with the Chicago Mercantile Exchange (CME) Group which led to an acquisition of an equity interest in Bursa Malaysia Derivatives Berhad. The partnership included the licensing of the settlement prices of the FCPO to CME and the trading of BMD's product offerings through the CME Globex® electronic trading platform.

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DISCLAIMER This brochure has been provided for general information purposes only. The information contained herein does not constitute legal, financial and/ or investment advice and neither does it make any recommendation or endorsement regarding the services mentioned herein. Although care has been taken to ensure the accuracy of the information within this brochure, Bursa Malaysia Berhad and its subsidiaries including Bursa Malaysia Derivatives ("Bursa Malaysia Group") do not warrant or represent, expressly or impliedly as to the accuracy or completeness of the information contained herein. All applicable laws, regulations and rules should be referred to in conjunction with this brochure. Bursa Malaysia Group does not accept any liability for any investment decisions made on the basis of this information. You are advised to seek independent advice prior to investing.

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