KUALA LUMPUR: Bursa Malaysia Derivatives Bhd has extended its longstanding agreement with CME Group for global product accessibility of its derivatives offerings.
The move aims to attract new participants to the Malaysian derivatives market, using a proven and robust trading ecosystem.
"This extension underscores the strength and success of our collaboration, and we look forward to further leveraging this collaboration to enhance our derivatives offerings and fully realise the growth potential of the Malaysian derivatives market," said Bursa Malaysia Derivatives director Mohd Saleem Kader Baka.
The strategic collaboration was originally established in 2009 when CME acquired a 25 per cent stake in Bursa Malaysia Derivatives.
Subsequently on Sept 20, 2010, the exchange's products were listed on CME Globex, the electronic trading platform operated by CME.
The move significantly increased accessibility for both local and international traders to participate in the Malaysian derivatives market.
CME head of Asia Pacific managing director Russell Beattie said the group is committed to collaborating with Bursa Malaysia Derivatives to further develop the local derivatives markets.
Beattie said the collaboration has not only provided improved accessibility, but has also elevated the presence of the benchmark Malaysian derivatives worldwide.
"We look forward to exploring further opportunities to better serve the risk management needs of market participants in Malaysia," he said.
The continuity of the collaboration complements Bursa Malaysia Derivatives' initiative to launch its inaugural currency futures contract by the fourth quarter of 2023, as well as recent efforts to extend trading hours of selected products.
Notably, the collaboration with CME has been instrumental in elevating the global prominence of the Bursa Malaysia crude palm oil futures (FCPO) contract, now renowned as the world's most liquid and successful FCPO contract.
As at August 2023, foreign participants account for 59 per cent of the exchange's derivatives trading volume.
