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The Malaysia Derivatives Exchange (MDEX), also known as Malaysian Distribution Exchange, is a limited share company formed during June 2001 in
Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
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 The Kuala Lumpur Stock Exchange (KLSE; ms, Bursa Saham Kuala Lumpur) dates back to 1930 when the Singapore Stockbrokers' Association was set up as a formal organisation dealing in securities in Malaya. In 1937, it was re-registered as the Malayan ...
(KLSE). MDEX is fully electronic, using the KLOFFE Automated Trading System (KATS). The exchange's most active contract is crude
palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 33% of global oils produced from ...
futures Futures may mean: Finance *Futures contract, a tradable financial derivatives contract *Futures exchange, a financial market where futures contracts are traded * ''Futures'' (magazine), an American finance magazine Music * ''Futures'' (album), a ...
. It also trades futures and
options Option or Options may refer to: Computing *Option key, a key on Apple computer keyboards *Option type, a polymorphic data type in programming languages * Command-line option, an optional parameter to a command *OPTIONS, an HTTP request method ...
on the KLSE Composite Index, three-month KLIBOR (Kuala Lumpur Interbank Offered Rate) futures, and five-year Malaysian Government
securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
futures. All
derivatives The derivative of a function is the rate of change of the function's output relative to its input value. Derivative may also refer to: In mathematics and economics * Brzozowski derivative in the theory of formal languages * Formal derivative, an ...
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 exchange A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or f ...
in
Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
and all of
Southeast Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical United Nations geoscheme for Asia#South-eastern Asia, south-eastern region of Asia, consistin ...
, established in 1980. In 1996, the Malaysian Monetary Exchange was incorporated to assist in the exchange's expansion to financial futures. The Commodity and Monetary 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 Exchange The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is a global derivatives marketplace based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board, an a ...
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 The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is a global derivatives marketplace based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board, an a ...
holds 25% of the equity stake, while the remaining is held by Bursa Malaysia Berhad.


See also

*
List of stock exchanges in the Commonwealth of Nations This is a list of active stock exchanges in the Commonwealth of Nations (Full Members). The Commonwealth of Nations features member-states located on all major continents and represents almost one-third of the Earth's population. Some states ha ...


External links


Official Website of Malaysia Derivatives Exchange

Official Website of Malaysia KLIBOR
{{Palm oil 2001 establishments in Malaysia Finance in Malaysia Palm oil production in Malaysia Bursa Malaysia