In conjunction with the opening of POC2018,
Bursa Malaysia has introduced new enhancements to further strengthen Crude Palm Oil Futures Contract (“FCPO”). These enhancements to the FCPO contract specification, effective since 26 February 2018, are as follows:
• Increase in Position Limits – Position limits for the FCPO market has been raised to allow traders to increase their exposures without the need to seek additional exemptions
• Revision of Trading Hours – Revised daily trading hours gives traders an additional 30 minutes for trading and hedging activities
• Extension of Trading Tenure – Additional tradeable contract months now gives more flexibility for traders to hedge their palm oil exposure
• Traceability Document Requirements – This new requirement requires sellers to provide traceability documents in order to facilitate the easier tracking of the origins of crude palm oil up to the palm oil mill.
Chief Executive Officer of Bursa Malaysia, Datuk Seri Tajuddin Atan said, “Enhancements to the FCPO contract specification is timely and in line with current market developments and industry need. The new traceability requirement in the FCPO facilitates self-declaration by sellers of FCPO contracts who wish to be involve in physical delivery, which aligns to the requirements and processes of MPSO. We have made it an integral part of our strategy to ensure that our initiatives are geared towards the sustainability of palm oil throughout the supply chain.”
“Bursa Malaysia will continue to carry on our commitment to further develop a sustainable marketplace by improving our ecosystem and enhancing our products. This initiative will further strengthen the FCPO as a preferred hedging tool among the world’s edible oil traders and continue to position the Exchange as the leading benchmark for the world’s palm oil price discovery marketplace.” Datuk Seri Tajuddin added.
He announced these at the global annual Palm & Laurics Price Outlook Conference & Exhibition (POC2018) yesterday.
The event was officiated by Minister of Plantation Industries & Commodities YB Datuk Seri Mah Siew Keong and attracted over 2,000 delegates across 50 countries.
POC2018, Bursa Malaysia’s flagship annual event is held from 5 – 7 March 2018 at Shangri-La Hotel, Kuala Lumpur. Themed “Price Disruption – Take Control, Manage Volatility”, POC2018 is designed as a collaborative platform that brings together policy makers, thought leaders and delegates from all over the world to discuss the challenges and new opportunities that will set the direction for the global palm oil industry in 2018.