The licensing agreement will allow Joint Asian Derivatives Exchange (JADE) to use the settlement prices of BM's crude palm oil futures contract to price its proposed palm oil futures contract. Palm oil futures are among the agricultural suite of Asian commodities derivatives which are being considered initially for trading on the JADE electronic trading platform. Other product suites will include energy and metals.
Mr Hsieh Fu Hua, SGX CEO said, "The MOU represents another step in our relationship with Bursa Malaysia. We will continue to leverage on our partnerships to bring exciting products to the Asian marketplace."
Mr Yusli Mohamed Yusoff, CEO of Bursa Malaysia said, "We are excited with the opportunities this MOU presents and this further cements the credibility of the Bursa Malaysia CPO Futures Contract as the leading pricing benchmark in the global palm oil trade".
CBOT President and CEO Bernard W. Dan said, "We are encouraged by the progress our joint venture has made, as we work towards out market launch in the third quarter of 2006. The opportunity to work with Bursa Malaysia for developing a new crude palm oil contract to trade on the e-cbot platform is exciting for the marketplace."