Bursa Derivatives extends derivatives trading strategic agreement with CME Group

KUALA LUMPUR: Bursa Malaysia Derivatives Bhd has announced extending its longstanding strategic agreement with CME Group’s electronic trading system through September 2028 to ensure the global accessibility of its derivatives offerings.

In a statement today, Bursa Malaysia said this move aimed to attract new participants to the Malaysian derivatives market, utilising a proven and robust trading ecosystem.

Bursa Malaysia Derivatives director Mohd Saleem Kader Bakas said the exchange is delighted to continue the journey with CME Group.

"This extension underscores the strength and success of our collaboration, and we look forward to further leveraging this partnership to enhance our derivatives offerings and fully realise the growth potential of the Malaysian derivatives market,” he said.

CME Group managing director and head of Asia Pacific Russell Beattie said that the collaboration, which includes the licensing of the settlement prices of the Crude Palm Oil Futures contract (FCPO) and the facilitation of the global distribution of Bursa Malaysia Derivatives’ contracts through the CME Globex electronic trading platform.

"It has not only provided improved accessibility but has also elevated the presence of the benchmark Malaysian derivatives worldwide and looks forward to exploring further opportunities to better serve the risk management needs of market participants in Malaysia,” he said.

Bursa Malaysia said the continuity of this collaboration complements Bursa Malaysia Derivatives’ forthcoming initiative to launch its inaugural currency futures contract by the fourth quarter of 2023 (subject to final regulatory approval) and recent efforts to extend trading hours of selected products.

"Notably, the collaboration with CME Group has been instrumental in elevating the global prominence of the Bursa Malaysia FCPO contract, now renowned as the world’s most liquid and successful FCPO contract.

"As of August 2023, foreign participants account for 59 per cent of the exchange’s derivatives trading volume,” it added. - Bernama

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