Bursa Malaysia Berhad (Bursa Malaysia) and Korea Exchange (KRX) recently signed an agreement to develop the infrastructure for the Commodity Murabahah House (CMH), an international spot commodity platform which operates under Shariah requirements.
Under the implementation agreement, the CMH infrastructure will be developed by the two exchanges and will have the capacity to potentially shape the landscape of the Malaysian Islamic capital market.
Dato’ Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia said, “A well established CMH infrastructure will give Bursa Malaysia the stature to bring forth Islamic capital market and its offerings to the global front. KRX has certainly demonstrated their capability for high delivery and credibility in developing world-class infrastructure as exemplified in our collaboration with KRX on the electronic trading platform for the bonds market. With the CMH, both countries can use the strength of its inventories as asset classes in improving the cash flow of the local distributors, thus reducing their holding cost. This tie up will also allow Islamic investors and issuers to provide critical mass of capital to trade new products.”
Chang Ho Lee, President of Korea Exchange said, “This CMH project has been initiated to further complement Malaysia’s aspiration in becoming an Islamic financial hub. In this respect, KRX is pleased to have the opportunity to contribute to this remarkable project. This arrangement will witness the collaboration of KRX’s technical expertise in developing various trading systems and Bursa Malaysia’s capabilities in offering innovative Islamic capital market products.”
