Bursa Malaysia Derivatives And Dalian Commodity Exchange Signs Third Partnership Agreement


Bursa Malaysia Derivatives Berhad (Bursa Malaysia Derivatives) extended their eight-year collaboration for another three years. Both Bursa Malaysia Derivatives and Dalian Commodity Exchange (DCE) formalised their mutual commitment to the promotion and progress of futures markets for oil and oilseeds globally, through the organisation of the annual China International Oils & Oilseeds Conference (CIOC).

Dato’ Tajuddin Atan, Chairman of Bursa Malaysia Derivatives and Chief Executive Officer of Bursa Malaysia Berhad (Bursa Malaysia) said, “The collaboration between Bursa Malaysia Derivatives and DCE reflects our commitment to elevate the visibility, understanding and promotion of hedging with exchange traded futures amongst global market oil and oilseed participants. It has been a fruitful eight years and I see continuous opportunities for closer collaboration. I look forward to promote and develop areas in which our crude palm oil futures (FCPO) and DCE’s Refined, Bleached and Dried (RBD) palm olein futures can complement each other, arising from the cross-market arbitrage opportunities between the two contracts.”

Mr. Li Zheng Qiang, President and Chief Executive Officer of DCE said, “DCE and Bursa Malaysia Derivatives’ partnership over the past eight years has been fruitful and mutually beneficial. Together, we have since built up CIOC from its initial attendance of 500 to 600 participants to more than 1,000 participants representing 17 countries in 2012. This is a milestone for us and I am confident that together we will be able to further elevate CIOC’s status as a internationally recognised industry event across different sectors, specifically properties and futures. Greater participation and representation will certainly elevate the content of the conference for the benefit of our members and clients.”

DCE’s RBD palm olein futures contract has continued to gain traction since its launch in 2007 whilst Bursa Malaysia Derivatives’ FCPO is the global benchmark for edible oils. Both are actively traded by international participants. In 2010, Bursa Malaysia Derivatives’ clearing house began accepting Renmimbi (RMB) as margin collateral for trading in the Malaysian derivatives market, a move that signifies China’s importance in the Malaysian derivatives market. Further, in 2012, Bursa Malaysia Derivatives’ clearing house has also accepted the Industrial and Commercial Bank of China, the largest bank by market capitalisation in China, as one of the approved banks recognised for settlement of trades executed in the Malaysian derivatives market.

Since its inception in 2006, CIOC has continued to attract local and global investors and has played host to senior dignitaries and speakers from the oils and oilseeds industry and trading community. CIOC’s focus on delivering the latest insights and developments as well as providing the much needed high-level platform for information exchange and networking has garnered strong support from both the investing and the oils and oilseed industry. CIOC has since cemented its role as a landmark event for the community and has seen its attendance double since it first started in 2006 to more than 1,000 strong in 2012.