Malaysia Derivatives Exchange
Encyclopedia
The Malaysia Derivatives Exchange (MDEX) is a limited share company formed during June 2001 in Malaysia through the merger of the Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) and the Commodity and Monetary Exchange of Malaysia (COMMEX Malaysia). It is a subsidiary of the Kuala Lumpur Stock Exchange
(KLSE).
MDEX is fully electronic, using the KLOFFE Automated Trading System (KATS). The exchange's most active contract is crude palm oil
futures
. It also trades futures and options
on the KLSE Composite Index, three-month KLIBOR (Kuala Lumpur Interbank Offered Rate) futures, and five-year Malaysian Government securities futures. All derivatives
except crude palm oil are cash settled. The KATS system has two trading sessions, separated by a lunch break. Trading is done Monday through Friday, from 8:45 a.m. to 6 p.m.
in Malaysia and all of Southeast Asia
, established in 1980. In 1996, the Malaysian Monetary Exchange was incorporated to assist in the exchange's expansion to financial futures. The Commodity and Montetary Exchange of Malaysia (COMEX) succeeded the KLCE and the Malaysia Commodity Exchange, a subsidiary of the former KLCE. It merged with the Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) in December 2000 and formed the Malaysia Derivatives Exchange (MDEX).
to improve accessibility to its global offerings. This partnership includes licensing of the settlement prices of the crude palm oil futures (FCPO) to establish Malaysia as the global benchmark for the commodity.
The partnership involves swap of ownership. Chicago Mercantile Exchange
holds 25% of the equity stake, while the remaining is held by Bursa Malaysia Berhad.They doing the p-rogram.
Kuala Lumpur Stock Exchange
The Kuala Lumpur Stock Exchange dates back to 1930 when the Singapore Stockbrokers' Association was set up as a formal organisation dealing in securities in Malaya...
(KLSE).
MDEX is fully electronic, using the KLOFFE Automated Trading System (KATS). The exchange's most active contract is crude palm oil
Palm oil
Palm oil, coconut oil and palm kernel oil are edible plant oils derived from the fruits of palm trees. Palm oil is extracted from the pulp of the fruit of the oil palm Elaeis guineensis; palm kernel oil is derived from the kernel of the oil palm and coconut oil is derived from the kernel of the...
futures
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
. It also trades futures and options
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
on the KLSE Composite Index, three-month KLIBOR (Kuala Lumpur Interbank Offered Rate) futures, and five-year Malaysian Government securities futures. All derivatives
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
except crude palm oil are cash settled. The KATS system has two trading sessions, separated by a lunch break. Trading is done Monday through Friday, from 8:45 a.m. to 6 p.m.
History
The Kuala Lumpur Commodity Exchange (KLCE) was the first futures exchangeFutures exchange
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of...
in Malaysia and all of Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
, established in 1980. In 1996, the Malaysian Monetary Exchange was incorporated to assist in the exchange's expansion to financial futures. The Commodity and Montetary Exchange of Malaysia (COMEX) succeeded the KLCE and the Malaysia Commodity Exchange, a subsidiary of the former KLCE. It merged with the Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) in December 2000 and formed the Malaysia Derivatives Exchange (MDEX).
Strategic Partnership
The MDEX entered a partnership with Chicago Mercantile ExchangeChicago Mercantile Exchange
The Chicago Mercantile Exchange is an American financial and commodity derivative exchange based in Chicago. The CME was founded in 1898 as the Chicago Butter and Egg Board. Originally, the exchange was a non-profit organization...
to improve accessibility to its global offerings. This partnership includes licensing of the settlement prices of the crude palm oil futures (FCPO) to establish Malaysia as the global benchmark for the commodity.
The partnership involves swap of ownership. Chicago Mercantile Exchange
Chicago Mercantile Exchange
The Chicago Mercantile Exchange is an American financial and commodity derivative exchange based in Chicago. The CME was founded in 1898 as the Chicago Butter and Egg Board. Originally, the exchange was a non-profit organization...
holds 25% of the equity stake, while the remaining is held by Bursa Malaysia Berhad.They doing the p-rogram.
External links
- Official Website of Malaysia Derivatives Exchange