The First Palm Olein Contract Unveiled on Bursa
The World’s First Options Contract Is Officially Unveiled on the Stock Exchange
The Palm Olein Options contract was successfully unveiled on Bursa Malaysia Sdn. Bhd on January 13. It is the first such options contact in the world.
The contract was launched on the Bleached and Deodorised (RBD) Palm Olein Futures (OPOL) and US Dollar Denominated Refined. This contract will serve as a complement to the current US Dollar Denominated RBD Palm Olein Futures Contract (FPOL). The Palm Olein futures is set to broaden the possibility of risk management tools currently available. It would be especially helpful for the existing palm oil industry players. The move is in line with Bursa’s aim to expand its derivatives section and the products it offers under this area.
The Palm Olein Contract Will Introduce Better Strategies
Participants in the market from now until 30 June 2020 will be eligible for a clearing waiver fee and exchange fee on all OPOL transactions. The Palm Olein contract will introduce better strategies that will raise the current derivatives trading level. This is in addition to attracting new types of market participants, commercial banks, options traders and writers.
The unveiling of the contract underlines Bursa’s commitment to creating an even stronger presence as the epicentre of palm oil price discoveries. Bursa Malaysia Sdn. Bhd hopes the contract will boost Malaysia’s presence as a premier global market for palm oil.