New Straits Times (05/02/2018) - KUALA LUMPUR: Bursa Malaysia will tweak the crude palm oil futures (FCPO) to facilitate tracebility as it aligns its processes with Malaysian Sustainable Palm Oil (MSPO), the national certification scheme.

"We're making some changes and seeking authority approvals. This change in the FCPO will come into effect within this quarter," said Bursa Malaysia Derivatives Bhd chief executive officer Jamaluddin Nor Mohamad.

Asked if palm oil traders would face additional charges from this change, Jamaluddin said: "No, there will not be any added cost. we're just effecting the traceability feature into the FCPO.

“We're aligning our processes to facilitate and better reflect the MSPO," he told NST Business in an exclusive interview here today.

The MSPO is essentially a reflection of an unified code of laws concerning best practices throughout the supply chain, from oil palm planting to palm oil processing.

When one is MSPO-certified, it confirms oil palm cultivation is being carried out on a balanced needs of people, profits and planet.

Within Bursa Malaysia’s suite of derivatives products, the FCPO contract is the most popular.

The FCPO contract was introduced in 1980. Todate, it has now grown into a globally-trusted product that is accessible and tradeable on the Globex trading platform via partnership with CME.

Despite other countries hosting palm oil markets, Bursa Malaysia remains leading benchmark for the world’s palm oil price discovery marketplace for more than 30 years.

"The FCPO is a preferred hedging tool among the world’s edible oil traders. We also operate the Bursa Suq Al-Sila for banks to buy and sell palm oil," Jamaluddin said.

Read more at https://www.nst.com.my/business/2018/02/332346/bursa-malaysia-tweak-crude-palm-oil-futures-facilitate-traceability