The year-to-date total trading volume was up 59% from January to October 2003, compared to the same period in 2002 for Crude Palm Oil Futures (FCPO), KLSE Composite Index Futures (FKLI), three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) interest rate Futures (FKB3) and Five-Year Malaysian Government Securities Futures (FMG5).
In total trading volume, over 1.67 million contracts were traded from January to October 2003 compared to 1.05 million contracts for the same period in 2002.
Executive Chairman of MDEX Abdul Jabbar Abdul Majid said the strong gains on MDEX were due to various factors.
"A key factor would be the continuous enhancement in the trading and market supervision on MDEX which has clearly contributed to a more efficient market place and greater investor participation and confidence.
"Combined with renewed interest and participation in derivatives products worldwide, MDEX is in a strategic position to continue to offer its services and products to a wide range of domestic and international investors," he said.
Trading volume for all MDEX products in October 2003 registered a new record high of 246,554 contracts, an increase of 31% over the previous record high of 187,799 registered in July 2003.
Abdul Jabbar said in addition to investment gains, derivatives continue to provide expanded opportunities for risk management and hedging for market participants.
"The uses and benefits of participating in derivatives trading are applicable to a very wide range of the financial market segment including financial institutions, insurance companies, bond portfolio managers, provident funds, asset managers, corporate treasurers, or individual investors and MDEX local members," he added.
Abdul Jabbar said derivatives could be widely used in both the financial and commodity markets.
"For our financial contracts, current market participants include the financial institutions, insurance companies, portfolio managers, provident funds and other funds. As for the FCPO, participants include the plantations, refineries, millers, dealers, merchants and end-users of the commodity.
"In addition, these markets also attract a large following from the general investing public as they also provide ample trading opportunities," he said.