KUALA LUMPUR, Malaysia, Jan.
23, 2015 /PRNewswire/ -- Bursa Malaysia Berhad ("Bursa
Malaysia") today announced that Bursa Malaysia Derivatives Berhad
("BMD") has been granted registration as a Foreign Board of Trade
("FBOT") by the U.S. Commodity Futures Trading Commission ("CFTC")
pursuant to Section 4(b)(1) of the Commodity Exchange Act and Part
48 of the CFTC's regulations. An Order of Registration has been
issued by the CFTC to BMD on 22 January
2015 in Washington D.C.
With this Order, BMD may now permit identified members and other
participants located in the U.S. to enter trades directly into its
electronic order entry and trade matching system on CME GLOBEX® to
trade BMD products.
Chief Executive Officer of Bursa Malaysia, Dato' Tajuddin Atan said, "The CFTC approval for BMD
to be registered as a FBOT is very much welcomed. We have had
requests from US customers trading on CME GLOBEX® to directly
access our market to hedge and arbitrage based on strategies they
have in other exchanges globally. This timely approval paves way
for this market opening and will add market vibrancy through
enhanced market access and time-to-market; consequently resulting
in enhanced trading and liquidity in our market.
The benefits of Direct Market Access (DMA) will certainly be an
incentive to draw US traders especially since Malaysia is the global marketplace for palm
oil derivatives and the global benchmark for palm oil namely the
Malaysian-ringgit denominated Crude Palm Oil Futures (FCPO)."
"We welcome the CFTC's approval for BMD to be registered as a
FBOT," said Phupinder Gill, Chief
Executive Officer of CME Group, which owns 25% of BMD. "Our
strategic partnership has paved the way for the
internationalisation of BMD in terms of global accessibility and
visibility through the migration of its products onto our CME
GLOBEX® trading platform, and given strength and confidence to the
Malaysian derivatives market."
Securities Commission Malaysia ("SC") Chairman, Datuk Ranjit Ajit Singh said, "This is an
important development that reinforces the strong regulatory
collaboration between the SC and the US CFTC at both the bilateral
and global levels. Widening market connectivity with the US
derivatives market will help strengthen the competitive position
and vibrancy of the Malaysian capital market as outlined in the
Capital Market Masterplan 2, and we will continue to place efforts
to expand and deepen linkage opportunities globally for our market
players and institutions."
Under the Bursa Malaysia Group, BMD provides, operates and
maintains a futures and options exchange and clearing house. In
2014, BMD charted an impressive growth with total volume traded
growing by 17 per cent to above 50,000 contracts compared to the
volume in 2013 of 43,490. A significant growth of 27 per cent was
observed in the FCPO contract where volumes hit an all time record
of 10.1 Million contracts for the year.
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About Bursa Malaysia:
Bursa Malaysia is an
approved exchange holding company under Section 15 of the Capital
Markets and Services Act 2007. A public company limited by shares
under the Companies Act 1965, Bursa Malaysia operates a
fully-integrated exchange, offering equities, derivatives,
offshore, bonds as well as Islamic products, and provides a diverse
range of investment choices globally.
For more information
on Bursa Malaysia, visit www.bursamalaysia.com. |
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SOURCE Bursa Malaysia