Published On: Tue, Sep 14th, 2010

Bursa Malaysia Derivatives to Migrate to CME Globex

Bursa Malaysia Derivatives Berhad (BMD), a subsidiary of Bursa Malaysia Berhad, today announced that it will migrate the trading of its derivatives products, comprising commodity, financial and equity futures, onto CME Group’s electronic trading platform, CME Globex®. The crossover from the current derivatives trading platform to the CME Globex® platform is scheduled for 20 September 2010, subject to a successful pre-implementation test that will be held on 18 September 2010.

Dato’ Yusli Mohamed Yusoff, Bursa Malaysia’s Chief Executive Officer who is also the Chairman of Bursa Malaysia Derivatives said, “Through our strategic alliance with CME Group, which was formalised last year that resulted in an acquisition of a 25% equity interest by CME Group Inc. in BMD, the move to the CME Globex® electronic trading platform is expected to increase the presence of our derivatives products globally, as well as bring greater access and reach of the Malaysian derivatives offerings.

“With multiple access points globally, CME Globex® will give unparalleled global distribution to our full range of derivatives products, particularly our star product crude palm oil futures (FCPO) contract which is the global price benchmark for the CPO market. Hosting our derivatives products on CME Globex® will further enhance our globalisation efforts and our product visibility. We are confident of attracting even more attention from global traders who will now have access to the most liquid FCPO contract in the world, for their trading, hedging and arbitraging needs.”

BMD will continue to operate and regulate its market as well as have control over trading hours, product and specifications, spread definitions and pricing, within the parameters supported by CME Globex®. The trading hours for the Malaysian derivatives market will remain unchanged. All BMD contracts traded on CME Globex® will continue, as per current practice, to be cleared by Bursa Malaysia Derivatives Clearing Berhad, a subsidiary of BMD. There are changes to the rules of Bursa Malaysia Derivatives Bhd to reflect the trading features and functionalities on CME Globex®.

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