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Bursa Malaysia Derivatives Berhad (“Bursa Malaysia Derivatives” or “the Exchange”) was named “Exchange of the Year – Commodities” and “Exchange of the Year – Sustainability” by the London-based Futures & Options World (“FOW”) Global Investor Group at The Asia Capital Markets Awards 2022. The awards ceremony, held in Singapore on 20 September 2022, recognise excellence in performance, innovation and achievement of organisations and individuals in the Asian capital markets.
Bursa Malaysia Derivatives’ Crude Palm Oil Futures (“FCPO”) contract ended 2021 on a high note, with a record full-year trading volume of 15.6 million FCPO contracts, or 390 million metric tonnes of Crude Palm Oil. This is more than five times the amount of CPO produced globally.
To provide greater price transparency to the Crude Palm Oil (CPO) market participants in Sabah and Sarawak, the Exchange launched the East Malaysia Crude Palm Oil Futures (FEPO) last year. Within eleven months from the FEPO launch, a total of 6,130 contracts traded was achieved, with the highest daily open interest of 208 lots on 17 June 2022.
“Despite greater market volatility experienced in 2021, we remained steadfast in facilitating better price discovery and providing additional access to trading for both local and foreign investors,” said Datuk Muhamad Umar Swift, Chairman of Bursa Malaysia Derivatives and Chief Executive Officer of Bursa Malaysia. “We are honoured to be recognised by the FOW Global Investor Group. These awards are testament to the Exchange’s commitment to continuously developing new products and services to meet the hedging and trading needs of traders and industry players, particularly in today’s challenging market outlook.”
Last year, Bursa Malaysia Derivatives began implementing the Malaysian Sustainable Palm Oil certification into the physical delivery process of its FCPO and FEPO contracts. This makes them the world's first physically delivered commodity derivatives contracts with a sustainable requirement mandated for delivery.
The Exchange’s effort in promoting ESG was further reinforced when Bursa Malaysia was admitted as a founding member of the United Nations Sustainable Stock Exchange derivatives network in October 2021.
“In addition to enhancing our product offerings, the Exchange plays a critical role in influencing a shift to more sustainable practices in physical markets, bringing the larger derivatives ecosystem closer to achieving the globally recognised Sustainable Development Goals,” said Mohd Saleem Kader Bakas, Acting Director of Bursa Malaysia Derivatives Berhad. “One significant effort was the signing of a strategic partnership Memorandum of Understanding with the Malaysian Palm Oil Certification Council to promote sustainability and responsible practices among players in the palm oil supply chain.”
“We will continue to strengthen our efforts in strategic improvement and product innovation in order to increase the strong appeal of the Malaysian derivatives market to investors,” added Mohd Saleem.
