KUALA LUMPUR, Sept 17 (Bernama) — The collaboration between Bursa Malaysia Bhd and CME Group Inc, the world’s largest and most diverse derivatives marketplace, received strong support from local and international players.
CIMB Group Chief Executive Datuk Seri Nazir Razak said the deal represents a significant step forward for the Malaysian capital market.
“Aside from the further internationalisation of our derivatives market, it reinforces Malaysia’s position as the leading global intermediary for crude palm oil (CPO).
“This collaboration betweeen Bursa Malaysia and CME will also enhance Malaysia’s profile to the international investment community which is timely as all countries reposition themselves for the post-crisis era,” he said in a statement issued by Bursa Malaysia Thursday.
Malaysian Futures Brokers Association President Steven Lai said the collaboration would enable Bursa Malaysia to host its derivatives products on CME Globex, CME’s electronic trading platform.
“This effectively means greater access and reach for the Malaysian derivatives market which will in turn benefit local brokers in the long term.
“We also look forward to the transfer of expertise and joint promotional activities with CME which will enhance the local derivatives market,” he added.
Bursa Malaysia today signed a strategic partnership agreement with CME as part of the exchange effort to further develop the Malaysian derivatives industry and gain greater global visibility.
Chief Executive Officer Datuk Yusli Mohamed Yusoff said the strategic partnership agreement involved three collaborative efforts — equity participation, licensing of Bursa Malaysia Derivatives Bhd crude palm oil futures settlement price and the provision of CME Globex services.
Malaysian Palm Oil Council Chief Executive Officer Tan Sri Dr Yusof Basiron said the collaboration would increase recognition for Malaysian CPO as a price benchmark for international edible oils.
“This is well in line with the council’s mission to promote palm oil market expansion via greater acceptance and enhance trade opportunities for the country,” he said.
Dorab Mistry, Director of Godrej International Ltd, said globalising CPO futures would also benefit the palm oil industry as it would solidify its role as a price benchmark for international edible oils. Source : BERNAMA
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