Back in 2010, we went to the SGX Symposium, where SGX Local entry was much easier than BursaD. We suggested BMD relax entry rules.

 

Now BursaD held it's roadshow to recruit new Local Participant, with no entry requirements, but with quota to trade 1000 contracts per month to enjoy beneficial rebates of scratch and day trades.

 

If you ask me, those keen to take up LP, you can try for 3 months. But bear in mind profits will be subject to income tax with 50% exemption. In addition after the 3 months, trading <1000 contracts, you will lose the 'edge' of scratch trade and day trade rebates, which is essential for the short term scalping style. One would not expect new LP to lift heavyweight type weights, it takes time to build muscles to go from light weights to heavyweight category, if at all.

 

My suggestion to BursaD is:

1 Fine if you want to impose a quota 1000 contracts

2 Quota met, the scratch trade rebates will be enjoyed by LP

3 Day trade rebates should be given regardless of the volume.

 

BMD, are you listening?