Commodity Trading Companies in Malaysia

A commodity trading company is a business that buys and sells commodities on the behalf of its clients. In Malaysia, these companies are regulated by the Commodity Trading Companies Act, which was enacted in 2011.

The Act requires all commodity trading companies to be licensed by the Malaysian Commodity Trading Commission (MCTC). The MCTC is responsible for ensuring that these companies comply with the Act and its regulations.

The Act prohibits commodity trading companies from engaging in certain activities, such as speculation and manipulation. These companies are also required to maintain adequate financial resources and to segregate client funds from their own.

The purpose of the Act is to protect investors from unscrupulous practices by commodity trading companies. By ensuring that these companies are licensed and regulated, the Act provides a measure of protection for investors.