The BMD Extends Cooperation with the Chicago Mercantile Exchange until September 2028

Enhancing Global Recognition and Participation

The Bursa Malaysia Derivatives Exchange (BMD) has announced its strategic partnership extension with the Chicago Mercantile Exchange (CME) until September 2028. This decision aims to further enhance the global recognition of their product offerings and attract increased investor participation.

Creating an Exceptional Trading Ecosystem

BMD's director, Mohd Saleem Kader Bakas, stated that in their ongoing collaboration with CME, they will leverage this robust trading ecosystem to attract new investors. He emphasized the success of this partnership and looks forward to extending cooperation to further enhance the supply of the company's derivatives and unlock the growth potential of Malaysia's derivatives market.

A long-standing historical partnership.

The strategic partnership between BMD and CME began in 2009 when CME acquired a 25% stake in BMD. Subsequently, in 2010, they introduced BMD's derivative products to CME's electronic trading platform, Globex, significantly facilitating the participation of domestic and international traders in the Malaysian derivatives market.

Although in 2019, Bursa Malaysia repurchased the 25% stake in BMD held by CME, both parties continued their collaboration through a non-binding strategic cooperation agreement. Additionally, they modified the Globex Services Agreement to ensure the availability of Malaysian derivative products on Globex until September 2025, with an option to renew for an additional three years. Now, this agreement has been successfully extended for three more years, maintaining the partnership until September 2028.

Enhancing the local derivatives market

CME's Managing Director and Head of the Asia-Pacific region, Russell Beattie, stated that the company is committed to closely collaborating with BMD to deepen the local derivatives market. Their cooperation encompasses not only collaboration on settlement prices for crude palm oil futures contracts but also the global promotion of Malaysian derivatives through CME Globex, providing enhanced risk management services to participating investors. This partnership will continue to explore further opportunities to better serve the needs of investors.

By extending this strategic partnership, BMD and CME will continue to work together to drive growth in the Malaysian derivatives market and offer more opportunities and services to global investors. The continuation of this collaboration ensures that their successful partnership will thrive, bringing more vitality to the financial markets.