Business Services Industry

Palm oil price may hit RM1,600 by Dec, BUSINESS TIMES

Business Times (Malaysia), October, 2003

Business Times (Malaysia) 10-04-2003 PROFIT margins of local derivatives houses are being squeezed by 20-30 per cent as competing futures brokers undercut commission rates to attract more investors. The extent of damage depends on how much discount futures brokers are giving for trades on the Malaysian Derivatives Exchange (MDEX), against their overheads and administrative costs.

The main perpetrators of undercutting, sources said, are newcomers in the futures industry that have between four and five years of experience. Some futures houses have lowered commission rates for crude palm oil futures by RM4.50, or 15 per cent, to RM25.50 per contract. Sources said financial bond futures contracts have also been cut by RM1, or 20 per cent, to RM4 per...

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