Bursa Malaysia Derivative Exchange (BMD)
Bursa Malaysia Derivative Exchange (BMD) today is one of the largest bourses in Asia with almost 1,000 listed companies offering a wide range of investment choices to the world. It was previously known as Kuala Lumpur Stock Exchange. In 1964, the Stock Exchange of Malaysia was established. With the secession of Singapore from Malaysia in 1965, the Stock Exchange of Malaysia was known as the Stock Exchange of Malaysia and Singapore. In 1973, currency interchangeability between Malaysia and Singapore ceased and the Stock Exchange of Malaysia and Singapore was divided into the Kuala Lumpur Stock Exchange Berhad and the Stock Exchange of Singapore.
Bursa Malaysia Derivatives, Berhad (BMD) and the Multi Commodity Exchange of India Limited (MCX) on dated 30th March 2006 tied-up to work together for developing the commodities market and cross listing of products.
Dubai Gold and Commodities Exchange (DGCX) and the Malaysian exchange, Bursa Malaysia Berhad on dated 16 January 2008 signed a Memorandum of Understanding (MOU) to establish cooperative ties aimed at developing the derivatives markets in Malaysia and the UAE. This MOU provides a platform for both parties to develop our strengths and product offerings in respect to palm oil, gold, crude oil, plastics and such other commodities.The agreement between DGCX and BMD allows us to explore untapped opportunities between the two regions with respect to new and existing products.
BMD Berhad world’s largest derivative exchange operates most liquid and successful crude palm oil futures contract in the world. The Crude Palm Oil Futures contract was launched in October 1980 and it is one of the most actively traded derivatives contract offered by it, representing almost 50% of its derivatives business. 2.2 million FCPO contracts worth RM85 billion were traded in 2007. It was recognized as the Exchange of the Year (Asia Pacific) 2008 against five other top Asia Pacific exchanges at the annual Futures & Options World (FOW) Awards 2008 in London. The win was due to its concerted efforts to promote, market and make itself attractive to investors outside of Malaysia.
The Malaysia Palm Oil Council (MPOC), an industry-funded organization, undertakes responsible marketing and educational activities for palm oil to ensure the continued confidence of consumers globally. It has become internationally recognized as a centre for information on all matters concerning palm oil and related industries. Commodities traded in BMD exchange is refined bleached deodorized palmolein, crude palm oil, palm kernel oil, etc.
Bursa Malaysia will unveil two new products in the first quarter of next year, of which one of them will be Palm Oil-based Commodity Murabahah (POCM).
According to Finance Minister, Tan Sri Nor Mohamed Yakcop leveraging on Malaysia’s competitive position in the crude palm oil market, POCM would serve as the underlying instrument in Islamic finance and capital market products. Although such commodity-based transactions are much used in Europe and West Asia, a crude palm oil-based Murabahah will be a first for Malaysia.
Thank you for the details which are known mostly to all traders in malaysia. I am enquring what MID category of contracts. I have head and seen buy contract and sell contract but i can now see Many contracts under MID category. I have enquired Kuala lumpur stock exchange as well as brokers and seminar arranger but none of them replied me till today. Are you in position to let me know what type of category this MID category?