Malaysia Derivatives Exchange (MDEX) And Malaysian Derivatives Clearing House (MDCH) - Report On Default Not Related To Derivatives Market

Malaysia Derivatives Exchange (MDEX) and Malaysian Derivatives Clearing House (MDCH) would like to clarify a report released by a news wire agency entitled "Malaysia Noon Palm Dips On Soy, Contract Default" today.

Among others, the report referred to a default of a Singapore firm on the delivery of palm oil.

MDEX and MDCH would like to inform that the default is not related to the derivatives market operated by MDEX and MDCH. As at the settlement date today, Thursday, 18 December 2003 - all clearing members have fully settled their obligations with MDCH.

Since its inception on 15 December 1995, MDCH has not experienced any defaults nor any losses as a result of non-performance of contract obligations. MDCH operations is backed by sound risk management procedures and a guarantee fund.