02/12/2011 (Commodities Now Online) - The Indonesia Commodity and Derivatives Exchange (ICDX) has succesfully obtained approval to launch a Refined Bleached Deodorized Palm Olein (RBDP Olein) Futures Contract from the Commodity Futures Trading Regulatory Agency (COFTRA).

The RBDP Olein Futures Contract, also known as OLEINTR, will be launched on December 9th, 2011. ICDX successfully launched the Crude Palm Oil Futures Contract (CPOTR) on 21st May last year. The growth of the CPOTR’s traded volumes has increased significantly by 480.25% over the year (Nov 2010 – Nov 2011).

By November 2011, the volumes traded have reached 876,655 lots with an average of 4,000 lots per day. With the ever-increasing volumes traded, in August 2011, the Indonesian government officially uses the price of the CPOTR contract at ICDX as the price basis for the calculation of the export duty for the Crude Palm Oil export from Indonesia.

ICDX hopes that OLEINTR could receive the similar response from the industry and the government in order to achieve the goal to create transparency in the price discovery and thus be the reliable benchmark in the Olein industry.

The contract specifications set for OLEINTR contracts are reflective to CPOTR’s. Both have the same lot size of 10 metric tons, and a tick size of IDR 5/kg (IDR 50,000/lot). The similarity in the contract specifications will be beneficial for the industry as it will enables them to lock the difference between the buying price of CPO with the selling price of Olein

The settlement of the OLEINTR contracts will be done through Physical Delivery with delivery points in Jakarta, Semarang and Surabaya. The trading period for OLEINTR is Monday - Friday, 09.30 - 17.30 Jakarta time, with 12 consecutive contract months offered.