KUALA LUMPUR (Jan 23): Bursa Malaysia Bhd (KL:BURSA) will launch a new benchmark index futures product to broaden investor access and provide a more affordable entry into Malaysia’s derivatives market next Monday (Jan 26).

The Mini FTSE Bursa Malaysia KLCI Futures (FLKM) is a smaller-sized version of the FTSE Bursa Malaysia KLCI Futures (FLKI), with a FLKM contract being RM10 per index point versus the FLKI’s RM50 per index point, the bourse operator said in a statement on Friday.

“This smaller contract size reduces upfront capital requirements, making index futures more accessible to retail investors,” it said.

With FLKM, investors can gain leveraged exposure to the FBM KLCI, providing an alternative way of participating in both rising and falling markets while utilising capital more efficiently, Bursa Malaysia said.

“The smaller contract size also allows for more flexibility in adjusting positions and may be used as a hedging tool, helping investors manage short-term market fluctuations without liquidating their long-term holdings,” it added.

Similar to FLKI, FLKM will be available for trading during the morning to afternoon trading sessions (8.45am to 5.15pm), Monday to Friday, and after-trading hours trading session (9.00pm to 2.30am), Monday to Thursday.

The move to introduce FLKM is part of a core component of the multi-asset exchange’s strategy, and product innovation, Bursa Malaysia chief executive officer Datuk Fad’l Mohamed noted.