KUALA LUMPUR (Jan 23): Bursa Malaysia Derivatives Bhd (BMD) has been granted registration as a Foreign Board of Trade (FBOT) by the US Commodity Futures Trading Commission (CFTC).

In a press release today, Bursa said the registration would allow US market participants to directly access CME GLOBEX to trade on derivatives listed on Bursa Malaysia.

Bursa Malaysia CEO Datuk Tajuddin Atan said the timely approval would add to vibrancy in the local exchange.

“The CFTC approval for BMD to be registered as a FBOT is very much welcomed. We have had requests from US customers trading on CME GLOBEX® to directly access our market to hedge and arbitrage based on strategies they have in other exchanges globally,” said Tajuddin

He added that the direct market access would be an incentive to draw US traders to Malaysia as it is the global marketplace for palm oil derivatives.

Meanwhile, Securities Commission (SC) Malaysia Chairman Datuk Ranjit Ajit Singh said the development would reinforce the strong regulatory collaboration between the SC and the US CFTC at both bilateral and global levels.

“Widening market connectivity with the US derivatives market will help strengthen the competitive position and vibrancy of the Malaysian capital market as outlined in the Capital Market Masterplan 2, and we will continue to place efforts to expand and deepen linkage opportunities globally for our market players and institutions,” said Ranjit.

BMD operates and maintains a futures and options exchange and clearing house under Bursa Malaysia Group.