Recently, Shanghai Futures Exchange (SHFE) and its subsidiary Shanghai International Energy Exchange (INE) have been officially approved for inclusion in Malaysia’s list of Specified Exchanges. Malaysian investors will be able to trade more futures products in the Chinese market conveniently through local brokerage firms.

According to relevant Malaysian laws, local investors who trade overseas derivatives through Malaysian brokerage firms can only participate in products listed on exchanges included in the list of Specified Exchanges of Bursa Malaysia Derivatives Berhad (BMD). Thus, the inclusion into the list means that Malaysian investors will be able to trade specified products that are listed on SHFE and INE through local brokers. Malaysia marks the first overseas jurisdiction where SHFE has completed regulatory registration, and it is the third jurisdiction—after Hong Kong and Singapore—where INE has successfully obtained such registration. This represents one of SHFE’s efforts in supporting the Belt and Road Initiative and progress in its internationalisation process, moving SHFE one step closer to its goal of becoming a world-class exchange.

Mr. Mohd Saleem, Director of the BMD, said: “The inclusion of SHFE and INE in Malaysia’s list of Specified Exchanges marks a significant step forward in enhancing the connectivity between the two markets. We look forward to deepening our collaboration with SHFE and INE to jointly advance market promotion and product innovation.”

Maxwell Ong, Head of Securities and Leveraged Products at CGS International Futures Malaysia Sdn. Bhd., stated that the company will actively apply to become an Overseas Intermediary of INE and introduce the Chinese market to Malaysian investors.

Going forward, SHFE and the BMD will, in accordance with their Memorandum of Understanding, promote pragmatic cooperation in market promotion and product research to serve regional investors in their market participation and risk management.