Back in 2003, Bursa increased the min tick from 0.1 to 0.50 while halving the tick multiplier to RM50 from RM100.(contract value halved) This led to the exponential rise in volume till today for the FKLI futures.

Now my trader friend informs me that they are proposing to reduce the tick from 0.50 to 0.10, but no ndication as to tick multiplier. Will this lead to exponential fall in volume? Highly likely as the contract liquidity might dry up as the locals withdraw. IMHO.

A liquid market is one where size can be moved without significantly affecting the price. With 0.10 tick movement, the market will become illiquid.

Bursa take heed.