Com­mod­ity’s trad­ing vol­ume on Bursa Malaysia has dou­bled in past five years

New Straits Times - - Business -


KUALA LUMPUR bt@me­di­

BURSA Malaysia De­riv­a­tives Bhd is ex­pected to set­tle more than 12 mil­lion crude palm oil fu­tures (FCPO) con­tracts this year, said chief ex­ec­u­tive of­fi­cer Ja­malud­din Nor Mo­hamad.

“In the last five years, the palm oil trad­ing vol­ume on the fu­tures mar­ket has dou­bled. Back in 2012, it was only six mil­lion con­tracts. This year, we are ex­pected to sur­pass 12 mil­lion con­tracts,” he said in a re­cent in­ter­view.

Bursa Malaysia in­tro­duced the FCPO con­tract in 1980. It has now grown into a glob­ally-trusted prod­uct that is ac­ces­si­ble and trade­able on the Globex trad­ing plat­form via part­ner­ship with CME.

The FCPO is a pre­ferred hedg­ing tool among the world’s ed­i­ble oil traders. Within Bursa Malaysia’s suite of de­riv­a­tives prod­ucts, the FCPO con­tract is the most pop­u­lar.

For the past 30 years, Bursa Malaysia has been the lead­ing bench­mark for the world’s palm oil price dis­cov­ery marketplace.

To­day, Malaysia pro­duces some 20 mil­lion tonnes of palm oil a year, of which about 19 mil­lion tonnes are shipped out of the coun­try. The palm oil in­dus­try is

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