Product And Services - Malaysia

Product And Services - Malaysia

Bursa Malaysia Derivatives Exchange (BMD)

HISTORY | The history of Bursa Malaysia Derivatives Exchange (BMD), previously known as the Kuala Lumpur Stock Exchange, dates back to 1930 when the Singapore Stockbrokers' Association was set up as a formal organization to deal with securities in Malaysia.

At that time, Bursa Malaysia focused on various initiatives aimed at improving its product and service offerings, increasing the liquidity and velocity of its markets, improving the efficiency of its businesses and achieving economies of scale in its operations. BMD was listed on its own main board in 2005.

CME Group and Bursa Malaysia partner for greater global participation. On 17 September 2009, CME Group and Bursa Malaysia joined a strategic partnership which aims to contribute to the overall growth of Malaysian capital markets by improving global access to the Malaysian derivatives market. This partnership includes licensing the settlement prices of the Crude Palm Oil Futures (FCPO) contract as well as facilitating global distribution of Bursa Malaysia Derivatives contracts through the CME Globex electronic trading platform, which improves accessibility and elevates the presence of benchmark Malaysian derivatives worldwide.

MARKET POSITION | Malaysia is one of the world's main producing countries of crude palm oil (CPO) and exports extensively overseas. Benefited by CPO's active physical trade in Malaysia, CPO contracts trading at BMD which acts as an international pricing benchmark for physical trading. BMD's main trading products include palm oil futures, equity index futures and options and the Malaysian Government Securities futures.