First Islamic Participating Organisation To Offer Syariah Discretionary Trading Services

KUALA LUMPUR (July 6): Bursa Malaysia Bhd has onboarded Malacca Securities Sdn Bhd as the first Islamic participating organisation to offer Syariah discretionary trading services to clients effective July 1, 2022.

Bursa chief executive officer Datuk Muhamad Umar Swift said the stock exchange is continuously enhancing its infrastructure to provide wider and easier access for investors to participate in the equity market.

“With the addition of Syariah discretionary trading, the investing public will have more options when investing in the equity market,” he said in a statement on Wednesday (July 6).

Bursa also encourages other participating organisations to consider offering Syariah discretionary trading services to their clients. 

Meanwhile, according to Malacca Securities managing director Lim Chia Wei, the company has been offering conventional discretionary trading services since 2016 and will continue to help clients achieve the best returns possible using tested and proven trading and execution strategies.

“This will relieve clients of the need to spend excessive time formulating trading decisions when dealing with the stock market,” Lim said.

Malacca Securities’ offering comes following the issuance of a Syariah pronouncement on discretionary trading by Bursa Malaysia Islamic Services Sdn Bhd’s Syariah committee, which now permits Islamic participating organisations to carry out such discretionary trading for their clients based on Syariah principles.

The goal of Syariah discretionary trading services is to enable Islamic participating organisations to provide investors with a tailored, structured and Syariah-compliant discretionary equity portfolio.

It is a solution that will appeal particularly to retail clients who do not have the privilege of being able to monitor the equity market, but who are keen to remain invested in equities. - The Edge Markets