Malaysia to create mercantile exchange to trade precious metals

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Malaysia to create mercantile exchange to trade precious metals

Malaysia is one of the leading gold consumer in Southeast Asia but lacks official and legal platforms to trade precious metals, leading to various gold scams involving fraudsters.

KUALA LUMPUR(BullionStreet): Malaysia is considering to establish an official platform to trade precious metals such as gold and silver, analysts said.

Malaysia is one of the leading gold consumer in Southeast Asia but lacks official and legal platforms to trade precious metals, leading to various gold scams involving fraudsters.

To avoid such incidents anymore Malaysian authorities are trying to create a mercantile exchange i to facilitate the trading of precious metals as it would represent a legal and structured way for such trading to take place.

This would actually give the public more accessibility in terms of buying and selling of gold, analysts added.

Most Malaysians are following the old age methods like dealing with over-the-counter goldsmiths and jewellery chains, along with different gold investment plans by various banks.

Malaysia’s Securities Commission introduced the concept of a mercantile exchange for trading and hedging of gold futures and other precious metals.

Analysts also expressed their concerns about the fact that how dealers in Malaysia understood the complexities of trading in gold futures and others.

However, it is understood that education will play a big part in the Securities Commission’s initiatives to build this new platform, similar to the education drive it is embarking on to create the awareness on the newly-launched Private Retirement Scheme.

The idea for such a mercantile exchange has its roots in the Capital Master Plan 2, which states that its intentions are to increase products on the derivatives market to deepen market liquidity, improve the ability to trade across markets and to hedge risks.

Currently, the leading mercantile exchanges of the world are the Chicago Mercantile Exchange and New York Mercantile Exchange where it is deemed as the benchmark for global price discovery on commodities traded which include gold among other commodities.

http://www.bullionstreet.com/news/malaysia-to-create-mercantile-exchange-to-trade-precious-metals/2494

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