Bursa Malaysia: Futures to migrate to CME Globex Sep 20

This article is written by Lim Shie-Lynn and published in the Wall Street Journal today.

KUALA LUMPUR (Dow Jones)--Bursa Malaysia Derivatives (BMD), a unit of Malaysia's stock exchange operator Bursa Malaysia Bhd, will migrate the trading of its derivatives products to CME Group's (CME) Globex platform Sept. 20, the stock exchange said Tuesday.

The migration of BMD's products to Globex follows CME Group's acquisition of a 25% stake last year in Bursa Malaysia's derivatives unit.

Through the partnership, CME is licensed to develop a dollar-denominated crude palm oil contract based on the settlement prices of BMD's ringgit-denominated contracts. The dollar-denominated contract commenced trading May 23 and is traded on the CME Globex.

A Bursa Malaysia executive, who preferred to remain anonymous, said on the sidelines of a company function that the stock exchange operator is considering introducing new products such as ringgit-denominated soybean and soyoil contracts. He didn't set a timeline for their launch.

Traders and analysts said the listing of a dollar-denominated cash-settled crude palm oil futures contact or CUPO on Globex and the migration of BMD's products, including the benchmark ringgit-denominated palm oil contract, onto CME's trading platform may enhance the visibility of the commodity.

The aim is to generate more trading interests in palm oil, which is found in products ranging from ice-cream to shampoo, cosmetic products and biodiesel.

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