Bursa Malaysia Derivative Berhad (BMD) Gold Futures
Pending regulatory approval, Bursa Malaysia Derivative Berhad (BMD) will list Gold futures (tag1151-SecurityGroup=FGLD, tag 55-Symbol=BG) for trading on CME Globex in Q3 2013. The production launch date will be announced in the CME Globex Notices as soon as it is available.

These futures are currently available for customer testing in New Release.

http://www.cmegroup.com/tools-information/...130729.html#BMD

Bursa Malaysia Derivative Berhad (BMD) Gold Futures
Effective Sunday, October 6 (trade date Monday, October 7), having received approval from the Securities Commission (SC), Bursa Malaysia Derivative Berhad (BMD) will list Gold futures (tag1151-SecurityGroup=FGLD, tag 55-Symbol=BG) for trading on CME Globex.

These BMD Gold futures will support implied functionality.

These futures are currently available for customer testing in New Release.

is bursa Malaysia coming out with Gold Future ETF?

What do you mean by exchange traded futures contract?

Thank you for the kind explanation. I'm investing in gold now using the maybank gold investment account. I think, it is not worthy as the bank earned a lot from it.

I see.. So are you a full time Gold trader?

When the Derivatives Gold Exchange Traded Future is out. Do I need to have a Central Depository System account to trade?

Hi all sifus,
Anyone plan to trade in the soon available bursa derivatives of gold futures?

Appreciate if you can share the +ve / -ve of such an investment tool... Thx in advance..

Malaysia to Start Gold Futures Trade as Investor Demand Expands

Malaysia’s first gold futures contract will start trading on Oct. 7 to meet investor demand, according to the head of the country’s derivatives exchange.

Gold prices will continue to be volatile and the 100-gram, ringgit-denominated contract will allow investors to trade without worrying about currency fluctuations, Chong Kim Seng, chief executive officer of Bursa Malaysia Derivatives Bhd., said in an interview. Bullion for delivery up to one year will be cash settled and benchmarked against the London fixing, he said.
Enlarge image Gold Jewelry

Gold slumped into a bear market this year after 12 annual gains, spurring increased demand from buyers in Asia including China, Thailand and Indonesia. Malaysia imported 9 billion ringgit ($2.8 billion) of gold in 2012, mainly for processing into jewelry, and exported about 7 billion ringgit of gold jewelry, said Chong. Gold imports totaled 6 billion ringgit in the first half, signaling increased physical demand, he said.

“The small contract size means retail customers, big or small, can be involved and traders who want to do hedging can just do multiples,” said Chong. “The issues that’s facing the U.S., the government shutdown and the tapering policy, have an impact on the U.S. dollar and interest rates, so it’s important that people consider gold as part of their portfolio.”

Gold for immediate delivery, which traded at $1,313.85 an ounce, has declined this year on speculation the U.S. Federal Reserve will taper stimulus as the largest economy strengthens while inflation fails to accelerate. Bullion rose 2.2 percent yesterday and fell 3.1 percent on Oct. 1 as the U.S. federal government’s first shutdown in 17 years began.
ETP Holdings

Rising demand for gold in Asia helped offset record sales from bullion-backed exchange traded products. Holdings that increased every year since the first product was listed in 2003 have shrunk 705.7 tons this year, reaching a three-year low of 1,926.2 tons yesterday, data compiled by Bloomberg show.

Demand for gold in Malaysia may increase as investors seek to hedge against a depreciating currency. The ringgit is the worst performer in Southeast Asia this year, with a 4.5 percent loss, after Indonesia’s rupiah and the Philippine peso.

“There’s a lot of investing interest out there in the marketplace and a need for a more safe and trusted regulated platform,” said Chong. Bursa, part-owned by CME Group Inc. and a unit of Bursa Malaysia Bhd. (BURSA), may start gold options and silver futures contracts later on, he said today.

http://www.bloomberg.com/news/2013-10-03/m...nd-expands.html

how much per point?

Gold, the new way to make money in Malaysia

“All that glitters is not gold” goes the well-known adage, but the glitter of gold never fails to attract. Some like to adorn themselves with it and some hoard it in the form of bullions in their vaults, while there are yet others who like to trade in gold futures.

Indians from India are said to be the biggest hoarders of gold, as about 20,000 tonnes are in private hands. India remains the biggest importer of gold from Malaysia.

Last year, Malaysia exported RM7.1bil worth of finished jewellery, with Dubai as the biggest buyer. And up to July this year, RM4.6bil worth of finished jewellery has been exported. The figure could double for the full year.

Where gold bullions are concerned, RM9bil was exported in non-monetary form last year, and this year, it could scale up to RM12bil. Gold bullions are used to make jewellery and also function as an investment tool.

For an investor who wants to diversify his portfolio from fixed deposits, stocks and bonds, gold is an option. It is seen as a safe haven in volatile situations.

Hence, it comes as no surprise that there are many investment trading schemes involving gold in the country. However, some have fallen foul of the authorities, as they are seen to be illegal deposit-taking companies.

One such case involves gold trading company Genneva Malaysia Sdn Bhd, whose directors have been slapped with a record number of 926 charges for money-laundering and illegal deposit-taking charges, among others. A total of RM5.5bil in deposits had been received by Genneva from 35,000 depositors. This gives us a glimpse of the demand for gold in the country.

This is why come Monday, gold futures will, for the first time, be traded on Bursa Malaysia. It is a historic moment for Bursa, but Malaysia is really a latecomer in gold futures trading. It should have been introduced a long time ago.

Gold futures and options are trading across several markets, including the United States, Britain, Singapore, Thailand, Taiwan and Hong Kong. Gold for immediate delivery was being traded at about US$1,313.85 (RM4,198.41) an ounce as of yesterday.

To get retail investors interested in gold futures, Bursa is offering small-sized contracts of 100 grams. However, traders who want to hedge can trade in multiple lots. One just needs RM1,000 to be able to start trading in gold futures.

As the ringgit-denominated contracts are cash-settled, there would be no physical deliveries. So, if you are worried about stocking up gold bars in your vault, diffuse that fear, as this is all about paper-shuffling.

The gold futures contracts allow market participants exposure to international gold price movements at a lower entry cost, and you can go short and long when prices go up and down. To get started, open a gold futures account with any one of the 19 registered futures brokers with Bursa. Brokers would want some form of collateral as in all derivatives and stocks, and there is a transaction cost for every transaction. The minimum price fluctuation for a gold futures contract is five sen per gram or RM5 per tick.

While this may be one way of diversifying your investment portfolio, the key to futures trading is your investment objective and risk appetite – essentially money-management skills. What this means is that you have to set limits for your gains and losses, stick to it and not let greed overcome you.

A futures broker with 17 years of experience says that “futures trading is easy to play, but it requires a strong discipline in money management”. Rule No. 1, he says, is money-management skills, while Rule No. 2 is to remember Rule No 1. If you do this, you can make money.

Gold has remained the hottest topic since the 1900s and its glitter has not faded. Bursa’s launch of its gold futures is the first step towards trading in precious metals, as it continues to add depth to the market. Next on the list would be gold options and silver futures, but whatever it does, it has to move faster.

Business editor (news) B K Sidhu says gold may be hot, but her nasi kandar today will be hotter.

http://www.thestar.com.my/Business/Busines...n-Malaysia.aspx

Any investment bank, brokerage company also can...

From which company can I apply for the Gold Future Deravatives?

FLGD probably wont be much success, because the secret for all commodity based Futures Trading are called "Physical Delivery"

ehh? am i missing something? any news from fed that's affecting the price?

so fast FOMC already?

The Fed stayed the course on policy today. Quantitative easing is unchanged--no taper yet. Policy rates remain unchanged with the fed funds target at a range of zero to 0.25 percent. The FOMC decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.

However, asset purchases are not on a preset course-they are data dependent.

Guidance is unchanged with the Fed keeping a 6.5 percent unemployment rate and 2.5 percent expected inflation rate as thresholds for considering changes in policy. The FOMC sees persistently below target inflation as posing risks to economic performance. The Fed will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Fed gave no hint as to when quantitative easing might be curtailed.

The statement noted that the FOMC is still waiting for the labor market to improve "substantially." The Fed said that while employment showed some improvement, the unemployment rate is still elevated. The FOMC recognized that inflation persistently below its 2 percent objective could pose risks to economic performance, but it anticipates that inflation will move back toward its objective over the medium term.

Notably, the Fed continued to state that accommodative monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.

The economy was characterized as expanding at a "moderate pace." Fiscal policy is seen as a drag on the economy. However, downside risks to the economy are seen to have diminished.

The vote for the statement was 9 to 1 with Kansas City Fed's Esther George dissenting. She was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long-term inflation expectations. Fed Governor Sarah Bloom Raskin did not attend the meeting.

Today's decision specifically means that the Fed will continue to weigh down on long-term interest rates-notably Treasuries and mortgage rates. And there will be continued pressure on risk preferences toward riskier assets-away from bonds and toward equities and even housing.

Most if not all own gold, if take short will go against their gold holding.

i guess alot ppl buy at higher price if SHORT will rugi la

hi bro, im newbie in paper gold investment,
btw , between pbb paper gold & uob paper gold , which is better ?