Bursa Malaysia Derivatives (“BMD”) continued its growth path in trading activity from the second half of 2019, achieving five historical all-time high for January 2020 which include the following:
- Highest Open Interest for all products combined
- Highest daily trading volume for Crude Palm Oil Futures contract (“FCPO”)
- Highest daily trading volume for all products combined
- Highest monthly trading volume for FCPO
- Highest monthly trading volume for all products combined
Open Interest for all products hit a new high of 343,251 contracts on 29 January 2020, surpassing the previous high of 337,268 contracts registered on 26 May 2016. Open Interest reflects the hedgers’ collective position in the Futures Exchange, mitigating their risk exposures in the physical market.
This follows the two historical highs registered on 28 January 2020 which saw the total daily trading volume for FCPO and the total daily trading volume for all products recording their highest ever daily trading volumes of 107,062 and 140,945 contracts respectively.
As a result, BMD ended the month of January 2020 with a record monthly high trading volume of 1.54 million contracts, surpassing the previous high of 1.47 million contracts registered in November 2019. This was mainly contributed by the active FCPO volumes, which achieved a historical month high of 1.26 million contracts traded, surpassing the previous record in November 2019 of 1.21 million contracts.
Acting Chief Executive Officer of BMD, Mr Samuel Ho said, “We are pleased to see the strong support from the trading community and industry players that has resulted in these achievements. In light of the global uncertainties, we anticipate that participation in the derivatives market will continue to grow. The continued growth in trading demonstrates the confidence of our customers in managing their price risk exposure through BMD’s product offerings. We will continue to develop the Malaysian derivatives market and improve the derivatives ecosystem to create a vibrant and sustainable capital market.”
