Bursa relaunches 5-year MGS futures with new settlement method

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PETALING JAYA: Bursa Malaysia Derivatives has relaunched the five-year Malaysian Government Bond (MGS) securities futures contract with a revised sett...

Bursa Malaysia Derivatives has relaunched the five-year Malaysian Government Bond securities futures contract with a revised settlement methodology, from the previous cash-settled to physical delivery.

The bourse explained that a key modification to the model is Bursa Malaysia Derivatives Clearing’s role of the central counterparty to facilitate the real-time delivery of the MGS. Bursa Malaysia Derivatives chairman and Bursa Malaysia CEO Datuk Umar Swift said it has worked closely with key market stakeholders to create the optimal and efficient physical delivery model for MGS futures, taking into consideration settlement efficiency risk and transparency to regulators.

 

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