Bursa Malaysia Readies New Clearinghouse For 1Q Launch
January 31 2012 - 10:15AM
Dow Jones News
Bursa Malaysia Bhd (1818.KU) is preparing to launch a new
trade-clearing facility for its derivatives markets that will
enable the Kuala Lumpur exchange to offer a broader range of
contracts, according to a senior executive.
The firm anticipates the new clearinghouse, built on technology
supplied by Korea Exchange, to start operations in the first
quarter, said Sree Kumar, general manager of business development
for Bursa Malaysia.
Bringing the new facility online will enable Bursa Malaysia to
offer options on crude palm oil, its most heavily traded commodity
market, as well as options on the country's main stock index and
new futures contracts denominated in foreign currencies.
Malaysia produces nearly half the world's supply of palm oil and
is ranked second in gloal production behind Indonesia. Bursa
Malaysia has vied with exchanges in Indonesia and China to capture
futures-trading business linked to the oil that is a key ingredient
in cosmetics, biodiesel and baked goods.
Bursa Malaysia has the backing of CME Group Inc. (CME), the
world's largest futures exchange group by volume, via a 2009 deal
that saw CME take a 25% stake in Bursa Malaysia's derivatives unit.
CME in mid-2010 connected Bursa Malaysia's markets to the Chicago
firm's Globex electronic trading platform, providing for
near-24-hour trade.
The broader distribution via CME's Globex helped to lift Bursa
Malaysia's futures volume in 2011 about 38% over 2010 levels, Kumar
said in an interview on the sidelines of a Commodity Markets
Council event. An average 35,000 contracts changed hands per day
last year.
"It's widened our products' distribution to the world at large,"
Kumar said.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117;
jacob.bunge@dowjones.com
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