CGS International Futures Malaysia (CGS MYF), the futures broking division of an integrated financial services company CGS International Securities Malaysia (CGS MY), has on Thursday announced the launch of the first publicly available CME Crypto Futures contracts in Malaysia for the two largest cryptocurrencies by market capitalization, Bitcoin (BTC) and Ethereum (Ether).
With this, CGS MY also becomes the first licensed derivatives broker in Malaysia to offer local traders and investors access to the potential of crypto futures via global derivatives exchange, CME Group – the world’s leading and most diverse future and options marketplace, the firm said in a statement.
“We are proud to bring this market first as we continue to enhance our product offerings and provide Malaysian traders and investors with access to internationally diverse and globally recognized financial instruments,
“The introduction of CME Crypto Futures contracts is a natural progression in our efforts to offer access to more complex instruments via a trusted platform such that our audience can capitalize on rapidly evolving market opportunities,” said Alan Inn Wei Loon, Deputy Chief Executive Officer of CGS MY.
“Through our network, CGS MY has access to the capabilities, infrastructure, and expertise to support sophisticated traders and investors looking for exposure to the explosive potential of digital assets but without taking on the full risk or exposure of buying and holding the crypto,
“The price discovery process adds to the benefits of trading these crypto future contracts within a regulated and trusted environment and at much lower trading fees,” he added.
According to the statement, CGS MY continues to expand its suite of trading and investment products, providing a regulated avenue for corporates, institutions, businesses, and retail clients to trade cryptocurrency futures.
The launch also comes at a time as institutional interest in digital assets grows, with cryptocurrencies playing an increasing role in diversified investment portfolios despite the current bearish global sentiment.
Through CGS MYF investors can trade Bitcoin, Micro Bitcoin, Ethereum, and Micro Ethereum futures contracts in a regulated, cash-settled environment.
This approach is an alternative to direct ownership of digital assets.
Other benefits are that the contracts allow for greater risk management and portfolio diversification while mitigating the volatility and security concerns associated with spot crypto trading.
“The cryptocurrency market is evolving rapidly, and institutional-grade products like CME Crypto Futures provide traders with a structured, transparent, and efficient way to gain exposure to digital assets,
“These contracts are ideal for experienced traders and investors seeking to hedge risks, capitalize on market movements and volatility, to enhance their portfolios – with a regulated instrument,” said Maxwell Ong Wai Boon, Head, Securities and Leveraged Products at CGS MYF.
“Together, our robust trading infrastructure and deep market expertise presents an attractive proposition for traders and investors who are looking for the appropriate platform to start trading cryptocurrency-related instruments,” he added.
The launch also reinforces CGS MYF’s position as a leading derivatives brokerage in Malaysia, providing clients with access to globally competitive trading opportunities, said the statement.
CGS MY taps on its wealth of global and ASEAN insights to offer equities trading, leveraged products, wealth management, investment banking, equities research, Shariah-compliant financing, fixed income, currency and commodities, structured products and prime brokerage services in over 15 countries and regions.
Along with its parent organization China Galaxy Securities, a securities house in China and CGS International Securities, CGS MY is used by more than 15 million customers globally.