Written by Issac Chew
On 23 June 2025, Bursa Malaysia Derivatives Bhd (‘BMD’) released the Trading Participants Circular 12/2025, announcing updates to Directive No 6.25(1)-001. This directive outlines the list of foreign exchanges that Malaysian derivatives Trading Participants are permitted to access, in line with Rule 6.25(1)(b) of the BMD Rules.
The Shanghai Futures Exchange (SHFE) and Shanghai International Energy Exchange (INE) have been formally added to the list of Specified Exchanges. All previously listed exchanges are still recognised and remain on the approved list of “Specified Exchanges”, meaning Trading Participants can continue trading standardised derivatives on these platforms without any changes.
Only specific types of approved derivatives contracts can be traded on each exchange. Rule 6.25(1)(b) prohibits Trading Participants from trading on overseas derivatives markets that aren’t officially recognised. With the addition of SHFE and INE to the approved list, Bursa is giving participants more flexibility to access a wider selection of Asia-based commodity and energy contracts.
This move marks a key step in Bursa Malaysia’s efforts to boost regional ties and make its derivatives market more globally competitive. SHFE is a major player in the global commodity futures market, while INE serves as China’s gateway for international energy trading, particularly in products such as crude oil.
The amendment came into effect immediately and has since been incorporated into the updated set of directives available on BMD’s regulatory portal.
Participants should consult the updated directives on BMD’s regulatory portal here and ensure full compliance ahead of any cross-border trading activity.
Published on 9 July 2025