TRADE SET TO

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

OOI TEE CHING

KUALA LUMPUR bt@mediaprima.com.my

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