20071005 With DMA announced, and the test servers running, I wonder how many brokers are considering large scale expansion to offer professional traders to trade as locals on Bursamalaysia Derivatives products through internet front end. Larger scale expansion will enable firms to bring the cost of access and platform costs down, and using internet as the 'last mile' connectivity to the DMA servers will add to the economy of scale benefits.

I was talking to one broker and was shocked to hear that the internet option was not in this first DMA release. A friend who spoke to another broking house CEO heard the same. However on checking with the Exchange this was the reply to my question:

"I was speaking to a broker (futures) who told me that DMA is not internet based, but on lease line. Is this true? Disappointing if it is."

"Correct. DMA is lease line, not internet ... BUT some brokers will connect the local to them via internet, and transmit the orders via lease line. So, it doesn't change anything. You can still trade from home."

So it clears things up. Brokers here have a narrow focus and need to broaden their horizon to go 'global.' With ignorance, some may even go for brand names like GL Trade, which another broker told me costs US1,500 PER MONTH alone for the front end order entry software. Look at the table above (captured from infinitybrokerage website), the front ends are state of the art that they are comparing and the cost is $0 to $50 per month. Industry here needs edustion and awareness and savvy to see what is out there to harness the true potential of DMA.

www.mbtrading.com has a demo of it's internet based platform which is FOC for clients. Why pay USD1,500 per month when you cna get good third party applications for free.