Bursa Malaysia Berhad successfully launched an enhanced US Dollar (USD) Denominated Refined, Bleached and Deodorised (RBD) Palm Olein Futures Contract (FPOL) to promote a more inclusive trading community on Bursa Malaysia Derivatives (BMD), in line with Bursa Malaysia’s aim to enhance product diversity in its trading sphere.
Its chief executive officer, Datuk Seri Tajuddin Atan said, “We are pleased to introduce the improved US Dollar Denominated FPOL as it provides more trading opportunities and flexibility to a wider group of investors, both domestic and foreign, who wish to explore commodity derivatives.
“This underscores the Exchange’s commitment in promoting greater flexibility for the industry, further strengthening our position as a leading ASEAN marketplace with global access.”
Offered to both domestic and foreign traders, FPOL is a Free-On-Board (FOB) physical delivery mechanism offered to the trading community on BMD, providing industry players with more trading opportunities in commodity derivatives that allow for transparent price discovery, regulated trading and an instrument for hedging, as palm oil refiners can now hedge against adverse Palm Oil price movements.
BMD strives to provide Certified Sustainable Palm Olein delivered through the Exchange’s Clearing House by implementing the submission of Traceability Documents by RBD Palm Olein seller, in line with the Exchange’s focus to ensure initiatives are geared towards building a sustainable marketplace.
In conjunction with this launch, the Exchange will be offering various incentives to the market participants including a full waiver of exchange and clearing fees for the first six (6) months of trading for FPOL contracts.
The trading hours for FPOL will begin from 9:00 a.m. to 12:00 p.m. (Malaysian Time) for the first trading session and the second trading session will begin from 1:30 p.m. to 6:00 p.m. (Malaysian Time).
