Understanding the new FTSE4Good Bursa Malaysia Index Futures (F4GM)

Too dull to trade KLCI Futures (FKLI) and wanna do *good* moving forward? Then, you should understand the new index futures here...

Bursa Malaysia Derivatives Berhad launched the cash-settled FTSE4Good Bursa Malaysia Index Futures (“F4GM”) Contract, aiming to meet the growing demand from Malaysian investors to include sustainable investment themes into their portfolios.

What is F4GM?

F4GM is a Ringgit Malaysia (MYR) denominated FTSE4Good Bursa Malaysia Index Futures that provides investors leveraged exposure to public listed companies (PLCs) with leading Environmental, Social, and Corporate Governance (ESG) practices.

Features

5 Reasons why you should trade F4GM?

1. Take Advantage of Both Bull & Bear Markets
   
   F4GM provides retail investors with a leveraged structured product to access ESG equity index. Buy low and sell high for a bullish outlook on the movement of the equity markets, and vice versa for a bearish outlook.
   
   
2. Leveraged Trading
   
   Gain leveraged exposure to the notional value of the underlying index with a relatively small amount of capital (initial margin), magnifying the effect of a given change in price.
   
   
3. Fulfillment of Sustainable Investing Mandates
   
   In addition to using F4GM as a hedge against the risk of unfavorable price movements in the equity markets, institutional investors may trade the F4GM to meet ESG investing mandates, as the constituents of the underlying FTSE4Good Bursa Malaysia Index are screened using an industry-renowned method.
   
   
4. Global Access
   
   F4GM is traded electronically on CME GLOBEX®, a global electronic trading platform. Accessing CME GLOBEX® is easy and allows individuals and professional traders anywhere around the world to access all Bursa Malaysia Derivatives products.
   
   
5. Regulated Trading
   
   Trade with confidence in a secured and transparent marketplace regulated by the Securities Commission Malaysia.
   
   

What are the Margin Requirements for F4GM & the Approved Foreign Currencies?

The Initial Margin for F4GM imposed by the Exchange is revised from time to time based on various factors including the price and volatility of the contract. Refer to the Circulars for the latest Performance Bond/Margin Rates of the F4GM Contract.

The foreign currencies accepted as initial margin for F4GM Contract are as follows:

•  Malaysian Ringgit (MYR)
•  US Dollar (USD)
•  British Pound (GBP)
•  Euro (EUR)
•  Hong Kong Dollar (HKD)
•  Japanese Yen (JPY)
•  Chinese Renminbi (RMB)
•  Singapore Dollar (SGD)
•  Australian Dollar (AUD)

Please refer to your licensed Futures Broker for other approved collateral.

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