Bursa Malaysia Derivatives (BMD) Berhad has successfully launched the RBD Palm Olein Futures Contract on 24th May 2018.
By introducing the improved US Dollar Denominated FPOL it will provide 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.
Currently the Exchange is 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.