Bursa Malaysia and the CME Group have announced a strategic partnership to collaborate on trade matching services, product licensing and minor cross-equity investments.
The CME Group equity stake will relate to Bursa Malaysia’s derivatives business. Under the partnership CME Group will use Bursa Malaysia’s RM-denominated CPO futures contract (FCPO) settlement prices, which will let the CME group develop a USD-denominated cash-settled CPO futures contract and its related options for listing on one of its registered exchanges.
In a statement, Dato' Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia, said, “The proposed collaboration is not only timely but also necessary as it would contribute to the overall growth of the Malaysian capital market. It is also aimed at globalizing the Malaysian crude palm oil (CPO) futures market. Consequently, part of this proposed collaboration will enable Bursa Malaysia Derivatives to list its derivatives products on CME Globex. Through this collaboration, we expect the resulting expertise and knowledge transfer to further facilitate our goal for a robust derivatives exchange.”
Terry Duffy, Executive Chairman of CME Group, added, “This initiative, when implemented, will enable our customers from other markets to access Bursa Malaysia's derivatives markets and products on CME Globex, the leading and most widely distributed electronic trading platform in the world, further demonstrating our flexibility to operate in multiple jurisdictions for the benefit of customers worldwide.”