PALM oil industry players are comfortable trading in Malaysia given the country's track record in the trade, chief executive officer of Bursa Malaysia Datuk Yusli Mohamed Yusoff said today.
Commenting on plans by the Indonesian Commodity & Derivative Exchange (ICDX), which planned to launch palm oil futures trading in April, he said:"We welcome healthy competition because we want the profile of palm oil contracts to be raised internationally.
"More contracts will also help raise the level of palm oil trading and provide opportunities for volume to grow."
Yusli said a large proportion of traders preferred to trade the local contract given its track record," he told reporters on the sidelines of the 2010/2011 Palm and Lauric Oils Conference & Exhibition.
"Bursa Malaysia is confident the existing forward crude palm oil (FCPO) contract will remain the global benchmark for crude palm oil futures trading," he added.
Bursa Malaysia Derivatives traded four million FCPO contracts in 2009, up 33 per cent from the three million contracts traded in 2008.
Meanwhile, Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok, in opening the conference, said trading in FCPO contracts had grown by leaps and bounds over the years and had the potential to grow further.
"Derivatives traders who value the opportunities for hedging and arbitrage continue to be interested in our FCPO offerings.
"Malaysia has three decades of experience in developing a highly liquid CPO futures contract," he said, adding that Bursa Malaysia would continue to proactively seek ways to maintain its successful track record. - Bernama