Bursa launches enhanced US dollar denominated FPOL
Published on: Friday, May 25, 2018
Kuala Lumpur: Bursa Malaysia Bhd has launched an enhanced US dollar denominated refined, bleached and deodorised (RBD) palm olein futures contract (FPOL) to promote a more inclusive trading community on Bursa Malaysia Derivatives (BMD).The exchange said this was in line with its aim to enhance product diversity in its trading sphere."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.
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"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," said Chief Executive Officer, Datuk Seri Tajuddin Atan, in a statement on Thursday.Bursa Malaysia said FPOL is a free-on-board 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.It said BMD strived 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 would be offering various incentives to the market participants including a full waiver of exchange and clearing fees for the first six months of trading for FPOL contracts, it added.
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