The current development of futures industry law in Malaysia

• Main Author: Yeon, Asmah Laili
• Format: Book Section
• Language: English
• Published: Universitas Islam Riau Indonesia 2010
• Subjects: K Law (General)
• Online Access: http://repo.uum.edu.my/2688/1/ASMAH_LAILI.pdf; http://repo.uum.edu.my/2688/
• Institution: Universiti Utara Malaysia

The objective of this paper is to highlight and analyse the recent development and amendment of the law of futures markets in Malaysia with special reference to the Capital Markets and Services Act 2007(CMSA 2007). The CMSA 2007 is the main statute which regulates and provides legal provisions for matters relating to the activities, markets and intermediaries in the capital markets. The CMSA 2007 is an Act which consolidate the Securities Industry Act 1983 and Futures Industry Act 1993(FIA 1993) and a few provisions from the Securities Commission Act 1993. The functions of regulation are (1) to define the key features of the financial system and the role securities and futures market institutions, including the development of new types of market activities; (2) to steer market participants towards the adoption of best practices; and (3) to create disincentives against behaviour that would be detrimental to the market. Therefore, the reformation of law in futures industry is very crucial in order to provide the foundation of effective practices amongst participants of the industry and establish efficient functioning of modern capital markets. The discussion focused on the issues of the establishment of the futures market, the legal licensing requirements, protection of investors in futures market and the development of Islamic Capital Market. The method used in analysing data of this focus research is a combination of comparative and historical approach. Apart from the mentioned method, analytical and critical analysis (Zahraa,1998)(Charterjee, 2000) were also used by the writer. Sources of data for this research are provisions in the CMSA 2007, FIA 1993, SCA 1993 and selected court cases which are relevant to the discussion.