KUALA LUMPUR: Bursa Malaysia has launched an enhanced US dollar-denominated refined, bleached and deodorised (RBD) palm olein futures contract (FPOL).
This is in line with the exchange's aim to enhance product diversity in its trading sphere.
Offered to both domestic and foreign traders, FPOL is a free-on-board physical delivery mechanism offered to the trading community on Bursa Malaysia Derivatives.
The FPOL is a free-on-board physical delivery available for both both domestic and foreign vegetable oils traders.
The FPOL allow for transparent price discovery, regulated trading and an instrument for hedging, as palm oil refiners can now hedge against adverse palm oil price movements.
In a statement today, Bursa chief executive officer Datuk Seri Tajuddin Atan said the derivatives market strives is facilitating certified sustainable palm olein delivered via the exchange's clearing house by having RBD palm olein seller submit traceability documents.
"We are also allowing full waiver of exchange and clearing fees for the first six months trading of FPOL contracts," he added.