KUALA LUMPUR, March 6 ― Bursa Malaysia, operator of the global benchmark crude palm oil contract, is making changes within the first half of this year to contracts for some other products in a bid to boost volumes, the exchange's chief said today.
Jamaluddin Nor Mohamad, Chief Executive of Bursa Malaysia Derivatives Bhd, said the exchange is aiming to add more delivery points for the RBD palm olein contract to make it more attractive for domestic and international users.
“We are in discussions with securities commissions,” Jamaluddin told Reuters, speaking on the sidelines of an industry conference in Kuala Lumpur. “We do have an olein contract at the moment and we also have crude palm kernel oil, with limited interest at the moment.”
Olein is one of the main derivatives of crude of palm oil, used largely as a cooking oil and in a wide variety of food products, but the olein contract has not traded for over six months due to limited commercial interest.
“Olein usage is very much global in nature,” Jamaluddin said. “We are looking at providing wider alternatives in terms of delivery points.”
Jamaluddin didn't disclose details on potential changes to the crude palm kernel oil contract. ― Reuters
