The CME Group Inc. (CME) will take a minor equity stake in Bursa Malaysia Bhd's (1818.KU) derivatives business, the Malaysian stock-exchange operator said Tuesday.

Bursa Malaysia Chief Executive Yusli Mohamed Yusoff said on the sidelines of a seminar that the deal is expected to be completed "within the next few weeks."

The initiative is subject to regulatory approval, Bursa said in a statement.

With this strategic partnership, the CME Group will use Bursa Malaysia's ringgit-denominated crude palm oil futures contracts or FCPO settlement prices, which will enable the CME Group to develop a US dollar-denominated cash-settled CPO futures contract and its related options for listing on one of the CME Group's U.S. registered exchanges.

This product is expected to be traded on the CME Globex, which is the CME Group's electronic trading platform.

"Our proposed strategic partnership with Bursa Malaysia will further enhance our globalization efforts by facilitating our customers' efficient access to Bursa Malaysia's important markets," said Craig Donohue, Chief Executive Officer of CME Group in the same statement.

"This proposed partnership will allow us to continue to expand our transaction processing business opportunities, increase our presence in Asia, as well as help our Malaysian partners grow their business."

Yusli Mohamed Yusoff, Chief Executive of Bursa Malaysia, said the move is aimed at globalizing the Malaysian CPO futures market.

- By Elffie Chew, Dow Jones Newswires; (603) 2026 1233; elffie.chew@dowjones.com