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Bursa Malaysia Derivatives Berhad (“Bursa Malaysia Derivatives” or “the Exchange”) today launched the cash settled FTSE4Good Bursa Malaysia Index Futures (“F4GM”) Contract, with the aim to meet the growing demand from Malaysian investors to include sustainable investment themes into their portfolios.
F4GM is the first Environmental, Social and Governance (“ESG”) based futures contract launched by Bursa Malaysia Derivatives with the FTSE4Good Bursa Malaysia (“F4GBM”) Index as its underlying instrument. The F4GBM Index measures the performance of more than 80 Malaysian public listed companies (“PLCs”) from across the small, medium and large market capitalisation segments that demonstrate strong ESG practices.
“The launch of F4GM is in line with the Exchange’s aspiration to offer a diverse range of products for responsible investing,” said Mohd Saleem Kader Bakas, Acting Director of Bursa Malaysia Derivatives.
“With F4GM, Malaysian investors will be able to align their financial goals with their ESG values. It is also a new avenue that will enable more capital to flow towards sustainable investments, supporting the growth of ESG-compliant Malaysian PLCs and benefiting Malaysia's economic growth overall,” he added.
The F4GBM Index provides a benchmark to making investments in PLCs with rated and screened ESG practices, while F4GM offers a cost-effective solution for investors to gain exposure to all constituents of F4GBM via a single futures contract. Priced at RM50 per F4GBM index point, the F4GM will be made available for trade starting 12 December 2022 via CME Globex, a global electronic trading platform. This contract will also be included in the After-hours (T+1) trading session.
For more information on FTSE4Good Bursa Malaysia Index Futures, please visit https://www.bursamalaysia.com/trade/our_products_services/derivatives/equity_derivatives/ftse4good-bursa-malaysia-index-futures-f4gm.
