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Bursa Malaysia Derivatives Berhad (“Bursa Malaysia Derivatives” or “the Exchange”) today reported an all-time high in yearly trading volume for all its products, as well as for Crude Palm Oil Futures (“FCPO”) for the year 2022. A total of 19.1 million contracts were traded, surpassing the previous record of 18.4 million contracts in 2021 by 3.7 percent. For FCPO, a total of 16.2 million contracts were traded in 2022, breaking the previous record of 15.6 million by 3.8 percent.
The higher trading volume is largely contributed by foreign institutions which accounted for 50 percent of the trading volume. Furthermore, their participation has also increased substantially by 27 percent from 2021. This strong growth demonstrates the continued confidence from the global trading community in FCPO as an effective risk management tool in times of volatility.
To ensure that this positive trading volume growth continues, Bursa Malaysia Derivatives is committed to develop and enhance its product offerings to meet the demand of investors and hedgers, which has resulted in the successful launch of the revamped Gold Futures (FGLD) Contract in September 2022 and the first Environmental, Social and Governance (“ESG”) based futures contract in December 2022, which is the cash settled FTSE4Good Bursa Malaysia Index Futures (“F4GM”) Contract.
The Exchange has also seen active trading during the After-Hours (T+1) Trading Session, with a total of 1.49 million contracts traded in 2022 during T+1 Session, which amounts to 8 percent of the total day and night trading volume. The highest daily trading volume during T+1 Session was recorded at 19,065 contracts on 1 December 2022.
“We are glad to see higher participation from global market participants in trading our products. We will continue to improve the Malaysian derivatives market ecosystem and strengthen our offerings with innovative products to create more opportunities for investors to diversify and hedge their portfolio,” said Mohd Saleem Kader Bakas, Acting Director of Bursa Malaysia Derivatives.
For more information on derivatives trading, please visit https://www.bursamalaysia.com.
