A Survey on the Development of Financial Derivative Market in Two Emerging Markets and Malaysia

1. Introduction Liberalization and sphericalization of world foodstuffs have resulted in inter-relatedness of monetary markets and contagion global events. The worlds fiscal markets atomic number 18 rapidly integrating into a hit global marketplace as investors are driven to cook countries in the search for higher returns and opportunities for risk diversification. As a result, the intimacy of Southeast Asian Nations (ASEAN) markets whitethorn have frame to a greater extent reason outly linked and may show greater co movements in the returns. In ordain to compare the development of financial derivative market in Malaysia, the two emerging markets we chose are Indonesia and Thailand. This is because both countries have close relationship with Malaysia, and they all in same region thread measureable to compare their performance everyplace each other. 2. Malaysia 3.1. Background of jacket crown market The Capital marketplace of Malaysia is govern ed by the Capital foodstuff exertion 2007, Securities Commission ferment 1993, Companies Act 1965, Commodities Trading Act 1980/85, Banking and Financial Institutions Act, 1989, and so on. As Singapore was once crack of Malaysia, companies in these two countries listed on both KLSE and the Stock tack of Singapore (SES) until the end of 1989.

aft(prenominal) that, KLSE took various measures such as the initiation of computerized trading, central depository, illumination and settlement placements to continually develop the market infrastructure. Besides that, home(prenominal) and foreign investors have reviewed the regulatory framework in order to promote IPOs and equity investment s. As a result, some(a) privatized companies! the likes of Telekom Malaysia Berhad and Tenaga Nasional Berhad were finally listed on KLSE. The primary market for Government bonds was create by the end of the 1980s. In addition, Malaysia government has introduced the principal bargainer dodge to develop the secondary market. Moreover, it also introduced an auction system for Government securities to promote fair pricing....If you want to get a full essay, order it on our website: OrderEssay.net

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