Trade Bursa Malaysia Futures
Trade the Bursa Malaysia Exchange
at Interactive Brokers
Access one of the largest bourses in ASEAN
Bursa Malaysia is an Exchange holding company incorporated in 1976 and listed in 2005. It has grown to be one of the largest bourses in ASEAN. Today, Bursa Malaysia operates and regulates a multi-asset exchange, offering a comprehensive range of investment, capital raising, and exchange-related facilities. Bursa Malaysia is committed to its mission of Creating Opportunities, Growing Value for the Malaysian capital market, economy, and society.
Bursa Malaysia Securities Berhad is the sole stock exchange of Malaysia. With a market cap of USD 380 Billion, comprised of 970 listed companies, Bursa Malaysia is one of the largest stock exchanges in Southeast Asia. The financial services industry, manufacturing, and the oil & gas sector are major contributors to its diversified economy.
Interactive Brokers is among the few brokers to provide access to trade Malaysian Ringgit (MYR)-denominated equities and ETFs in Bursa Malaysia’s Main Market and Ace Market. In addition, IBKR helps facilitate client access to the Bursa Malaysia exchange by automatically converting your account’s base currency into Malaysian Ringgit for trading the exchange.
Main Market
The Main Market is a prime market for established companies that have met the standards in terms of quality, size and operations. Potential issuers for the Main Market must demonstrate that they have achieved minimum profit track record or minimum size measured by market capitalization.
Visit the Bursa Malaysia website for more information on listing criteria, the listing process and the Main Market.
Ace Market
ACE Market is a sponsor-driven market designed for companies with growth prospects. It was formerly known as the MESDAQ Market prior to 3 August 2009. Sponsors must assess the suitability of potential issuers and consider attributes such as business prospects, corporate conduct and adequacy of internal control.
Visit the Bursa Malaysia website for more information on listing criteria, the listing process or information on contacting an adviser/sponsor.
FCPO is a Ringgit Malaysia (MYR) denominated Crude Palm Oil Futures Contract traded on Bursa Malaysia Derivatives. Since October 1980, it has provided market participants with a global price benchmark for the Crude Palm Oil Market. For over 40 years, FCPO has been actively used by edible oils and fats industry players as a risk management solution, as well as by fund managers and financial institutions to manage price fluctuations in the market.
The Malaysian Sustainable Palm Oil (MSPO) certification requirement, effective 1 April 2021, applies to all FCPO physical delivery. This makes Bursa Malaysia Derivatives the first Exchange in the world to offer physically delivered commodity derivatives contracts with a sustainable requirement mandated for delivery. In addition, the FCPO Contract is Shariah-compliant.
Bursa Malaysia Derivatives' Palm Complex offerings consolidate Malaysia's position as the leading price discovery centre for palm oil traded globally.
Why trade Bursa Malaysia Crude Palm Oil Futures (FCPO)?
- Global Access
FCPO is traded electronically on CME GLOBEX®, a global electronic trading platform. Accessing CME Globex® is easy and allows individual and professional traders anywhere around the world to access all Bursa Malaysia Derivatives products. - Risk Management
Plantation companies, refineries, exporters and millers can use FCPO to manage risk and hedge against the risk of unfavorable price movement in the physical market. - Leveraged Trading
Gain leveraged exposure to the notional value of the underlying asset with a relatively small amount of capital (Initial Margin), magnifying the effect of a given change in price.
- Immediate Market Exposure
Global fund managers, commodity trading advisers, and proprietary traders can gain immediate exposure to the active Crude Palm Oil market via FCPO. - Take Advantage of Both Bull and Bear Markets
FCPO provides retail investors with a structured product to access the Crude Palm Oil market. Buy low and sell high for a bullish outlook on the movement of Crude Palm Oil prices, and vice versa for a bearish outlook. - Sustainable Physical Delivery Process
All physical delivery of Crude Palm Oil (CPO) under the FCPO contract must be sourced from Palm Oil Mills that fulfil Oil Palm Management Certification (OPMC) under the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme requirements.
Contract Specifications
| Contract Code | FCPO |
| Underlying Instrument | Crude Palm Oil |
| Contract Size | 25 Metric Tons (MT) |
| Contract Months | Spot month and the next 11 succeeding months, and thereafter, alternate months up to 36 months ahead |
| Trading Hours |
Monday to Friday (Malaysia time)
Monday to Thursday (Malaysia time)
|
| Pricing Unit | Malaysian Ringgit (MYR) |
| Price Limits |
|
| Minimum Price Fluctuation | MYR 1.00 / MT |
| Final Settlement | Physical Delivery * All FCPO physical delivery must be Malaysian Sustainable Palm Oil (MSPO) certified. |
| Options Available | OCPO |
FKLI is a Ringgit Malaysia (“MYR”) denominated FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) Futures Contract traded on Bursa Malaysia Derivatives, providing market participants exposure to the underlying FBM KLCI constituents. It is actively used by both institutional and retail investors in their respective trading portfolios.
Why trade FTSE Bursa Malaysia KLCI Futures (FKLI)?
- Exposure to Constituents of FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI)
Gain exposure to the FBM KLCI comprising the 30 largest companies listed on the Bursa Malaysia Main Market with a single futures contract. - Lower Cost of Entry
In addressing an interim cash shortage, an institution may buy the FKLI as a temporary substitute for holding stocks and liquidate the futures position later once the physical stocks are acquired. This entails a cheaper entry (via initial margin) for similar exposure, minus the cost of an outright purchase. - Ability to Short Sell
When there is a bearish market outlook, a trader can sell a FKLI contract first to initiate a short position and buy back later at a lower price to close out the position and vice versa.
- Prudent Capital Management
An insurance company or fund manager with an equity portfolio may use FKLI as a hedging tool to protect the portfolio against a potential decline of the underlying stock index. - Leveraged Trading
Market participants may use FKLI to gain leveraged exposure to the price volatility of the underlying FBM KLCI index. - Global Access
FKLI is traded electronically on CME GLOBEX®, a global electronic trading platform. Accessing CME GLOBEX® is easy and allows individual and professional traders anywhere around the world to access all Bursa Malaysia Derivatives products.
Contract Specifications
| Contract Code | FKLI |
| Underlying Instrument | FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) |
| Contract Size | FBM KLCI multiplied by MYR 50.00 |
| Contract Month | Spot month, the next month and the next two calendar quarterly months. The calendar quarterly months are March, June, September and December. |
| Trading Hours |
Monday to Friday (Malaysia time)
Monday to Thursday (Malaysia time)
|
| Pricing Unit | Malaysian Ringgit (MYR) |
| Minimum Price Fluctuation | 0.5 index point valued at MYR 25.00 |
| Final Trading Day | Cash Settlement based on the Final Settlement Value. |
Why Trade the Bursa Malaysia Exchange with Interactive Brokers?
Interactive Brokers (Nasdaq: IBKR) is an automated global electronic broker that serves individual investors, hedge funds, proprietary trading groups, registered investment advisors and introducing brokers.
Our four-decade focus on technology and automation allows us to provide our clients with a sophisticated, global trading platform with the lowest costs for managing investments. IBKR clients enjoy access to stocks, options, futures, currencies, bonds, funds and more on over 150 markets in 34 countries.
Already a Client?
If you are an IBKR client with "All Asia Pacific" or "Malaysia" Futures trading permission, you can already trade Bursa Malaysia futures. If you would like to request Futures trading permissions or modify your existing permissions, simply log in to Client Portal, navigate to the User ("head/shoulders" icon) > Settings > Trading Permissions – Futures menu item, click Add/Edit, Select "All Asia Pacific" or "Malaysia" and click Continue.
Trading permission upgrades are subject to a compliance review, which is typically completed within 1-2 business days.