Malaysia Derivatives Exchange

Malaysia Derivatives Exchange (MDEX) is a financial and commodity derivatives exchange based in Kuala Lumpur, Malaysia. It is a subsidiary of Bursa Malaysia, the country's primary stock exchange, and is regulated by the Securities Commission Malaysia.

History

The Malaysia Derivatives Exchange was established in 1980 as the Kuala Lumpur Commodity Exchange (KLCE). It was the first commodity exchange in Malaysia, and one of the earliest in the Asia-Pacific region. In 1998, KLCE merged with the Financial Futures Exchange (MFFE) to form the Commodity and Monetary Exchange of Malaysia (COMMEX). In 2001, COMMEX was renamed the Malaysia Derivatives Exchange.

Products

MDEX offers a variety of derivative products, including futures and options contracts on commodities such as palm oil, rubber, and tin, as well as financial derivatives such as interest rate futures and stock index futures. The exchange's most traded product is the Crude Palm Oil Futures (FCPO), which is the global benchmark for the pricing of palm oil.

Trading

Trading on MDEX is conducted electronically through the Bursa Malaysia Derivatives Electronic Trading Platform (BMD ETP). The platform provides real-time trading information and allows for direct market access.

Regulation

MDEX is regulated by the Securities Commission Malaysia, which oversees the operations of the exchange to ensure compliance with securities laws and regulations. The exchange also has its own rules and regulations, which are enforced by its Market Surveillance department.

See also

• Bursa Malaysia
• Securities Commission Malaysia
• Derivatives market
• Commodity market