Commodity derivatives are financial instruments the values of which depend on that of a commodity, such as grains, energy or metals.

Bursa Malaysia Commodity derivative products consist of 2 categories which are agriculture & precious metal. The following are the commodity derivative products that are currently available on BMD:

Contract Specifications:

Gold Futures (FGLD)
Crude Palm Oil Futures (FCPO)
USD RBD Palm Olien Futures (FPOL)
USD Crude Palm Oil Futures (FUPO)
Crude Palm Kernel Oil Futures (FPKO)
Options on Crude Palm Oil Futures (OCPO)
Tin Futures (FTIN)

FGLD is a small-sized Ringgit Malaysia (“RM”) denominated gold futures contract traded on Bursa Malaysia Derivatives, providing market participants exposure to international gold price movements at a lower entry cost.

Product Symbol FGLD
Underlying Asset Gold assayed to a minimum of 995 fineness
Contract Multiplier 100 grams
Minimum Price Fluctuation RM0.05 per gram
Value per Tick $5.00
Settlement Cash settlement

TRADING HOURS(Malaysia Time, GMT +8)

Monday to Friday
First Session : 0900 – 1230 hours
Second Session : 1430 – 1900 hours

Crude Palm Oil Futures (FCPO) is a Ringgit Malaysia (MYR) denominated palm oil futures contract traded on Bursa Malaysia Derivatives (BMD) which acts as the world’s price discovery benchmark for Crude Palm Oil since 1980.

The contract allows traders to gain leveraged exposure in Crude Palm Oil for a small capital outlay and provides ample prospects for directional trading, hedging, arbitraging and intra- commodity spreading.

Product Symbol FCPO
Underlying Instrument Crude Palm Oil
Contract Multiplier 25 metric tonnes
Minimum Price Fluctuation RM1.00
Value per Tick RM25.00
Settlement Physical settlement

TRADING HOURS(Malaysia Time, GMT +8)

First Session : 1030 – 1230 hours
Second Session : 1430 – 1800 hours

FPOL is a Free on Board (FOB) physically delivered US Dollar (“USD”) denominated Refined, Bleached and Deodorised (RBD) Palm Olein Futures contract traded on Bursa Malaysia Derivatives (BMD).

As listed derivatives on BMD, FPOL will provide a transparent price discovery on a regulated trading environment. Traders and consumers can now hedge against Palm Oil adverse price movement with confidence as BMD Clearing House guarantees the performance of all trades. Refiners can also use FPOL to manage the refining margin between Crude Palm Oil against RBD Palm Olein.

Product Symbol FPOL
Underlying Instrument RBD Palm Olein
Contract Size 25 metric tonnes (25,000 kg)
Price Quotation US$ per MT
Tick Size US$0.50 per MT
Settlement FOB Physical Delivery at PK / PG with multiple size of 500MT. Others will be cash settled against the Final Settlement

TRADING HOURS(Malaysia Time, GMT +8)

Monday to Friday
First Session : 0900 – 1200 hours
Second Session : 1330 – 1800 hours

FUPO is a USD denominated palm oil futures contract which compliments the existing MYR denominated Crude Palm Oil Futures contract (FCPO).

It is a cash settled contract which does not involve physical delivery of the underlying Crude Palm Oil (CPO). FUPO also consolidates Malaysia’s position as the leading price discovery centre for palm oil traded globally.

Product Symbol FUPO
Underlying Instrument Crude Palm Oil
Contract Size 25 metric tons
Minimum Price Fluctuation USD0.25 per metric ton
Settlement Methodology Cash Settled

TRADING HOURS(Malaysia Time, GMT +8)

First Session : 1030 – 1230 hours
Second Session : 1500 – 1800 hours

Product Symbol FPKO
Underlying Instrument Crude Palm Kernel Oil
Contract Size 25 metric tons
Minimum Price Fluctuation RM1 per metric ton
Settlement Physical Delivery

TRADING HOURS(Malaysia Time, GMT +8)

First Session : 1030 – 1230 hours
Second Session : 1500 – 1805 hours

The OCPO, which uses FCPO as its underlying contract, offers another risk management tool for industry participants to better meet their hedging needs.

OCPO gives the option contract holder the right, but not the obligation, to buy or sell the underlying, FCPO, at the specified strike price on a specified date in the future. OCPO offers hedgers an alternative to manage potential downside risks and requires a smaller initial outlay compared to futures trading.

Product Symbol OCPO
Underlying Instrument Crude Palm Oil Futures (FCPO) Contract
Exercise Style European Style
Contract Size One FCPO contract (of a specified month) of 25 metric tons (MT)
Tick Size RM0.50 per metric ton (RM12.50 per contract)

TRADING HOURS(Malaysia Time, GMT +8)

First Session : 1030 – 1230 hours
Second Session : 1500 – 1800 hours

FTIN is a US Dollar(“USD”) denominated tin futures contract traded on Bursa Malaysia Derivatives, providing market participants exposure to tin price movements.

Product Symbol FTIN
Underlying Instrument Refined tin metal of ASTM Grade A specification B 339.93, with a minimum content of 99.85% Sn of any of the brands which are approved by the Board of the Kuala Lumpur Tin Market (KLTM), or such other technical specifications of refined tin metal underlying the physical tin official price published by the Kuala Lumpur Tin Market (“KLTM Price”) from time to time
Settlement Method Cash Settlement
Contract Size 1 metric tonne
Minimum Price Fluctuation 1 US Dollar per metric tonne

TRADING HOURS(Malaysia Time, GMT +8)

Monday to Friday
First Session : 0900 – 1200 hours
Second Session : 1330 – 1500 hours

Source: Bursa Malaysia Derivatives

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