PETALING JAYA: CGS-CIMB Futures has launched the country’s first global syariah-compliant futures account for Chicago Mercantile Exchange (CME) and Singapore Exchange (SGX) products.
This is a significant expansion of its product offerings beyond Bursa Malaysia Derivatives alone, CGS-CIMB Securities Sdn Bhd said.
“The environment is totally different, so when a client opens an account, the forms will not include any non-syariah compliant terms such as interest and secondly, when they deposit money into the trust account, it will not interest as well,” CGS-CIMB’s Regional Futures and CFDs manager of sales and dealing Muhammad Azwan Sekeri said in a statement yesterday, after its launch.
Azwan expects that in the near future, some 70% of traders will opt for such a syariah-compliant trading environment.
“We (soft) launched last year and most of these new account openings came from the bumiputra traders, as they are looking for an alternative platform to diversify their asset class which is aligned to syariah principles,” he said.
Azwan said the company will continue with its educational programmes to attract more people into this new futures account.
“We are grateful to be Malaysia’s first derivative broker to launch the global syariah-compliant futures account.
“As we embark on this new chapter, let us remain mindful of the vast potential that lies ahead.
“This innovation holds the power to attract a diverse spectrum of investors seeking to align their financial aspirations with their faith,” said CGS-CIMB Securities Malaysia’s chief executive officer Azizah Mohd Yatim in a statement.
“This innovative offering is testament to the convergence of syariah principles with modern financial instruments, as well as the harmony between traditional values and progressive financial solutions,” said CGS-CIMB Securities syariah adviser Prof Aznan Hasan.
CGS-CIMB Securities is a 75-25 joint venture between China Galaxy International Financial Holdings Ltd, which is a unit of China Galaxy Securities Co Ltd and CIMB Group
Sdn Bhd.
