MCX, Bursa Malaysia to launch palm oil contracts

Multi-Commodity Exchange of India (MCX) today signed a memorandum of understanding with Bursa Malaysia Derivatives Berhad (BMD) for developing the commoditiy market and for cross-listing of products. Initially, the exchanges will start a futures contract in crude palm oil soon.

"Malaysia remains the biggest partner for India in the palm oil category. Apart from it, there are a lot of global opportunities and value for both the exchanges to explore," Jignesh Shah, managing director of MCX, said.

He added that Bursa Malaysia is one of the most reputed exchange for palm oil in the world, and its prices are treated as the global benchmark.

Raghbir Singh Bhart, head (global markets) of Bursa Malaysia, said the agreement holds strong scope of synergy between MCX and Bursa.