PRODUCTS
East Malaysia Crude Palm Oil Futures (FEPO)
FEPO is a Ringgit Malaysia (MYR) denominated Crude Palm Oil Futures Contract traded on Bursa Malaysia Derivatives that provides a new avenue for price discovery of the crude palm oil produced in East Malaysia. It complements the existing FCPO contract with specifications designed to meet the needs of market participants with exposure to the East Malaysia palm oil market. Its delivery ports located in Sabah and Sarawak reduce logistics cost for physical delivery and earlier trading hours enable new trading opportunities.
The Malaysian Sustainable Palm Oil
(MSPO) certification requirement applicable to all FEPO physical delivery makes
Bursa Malaysia Derivatives the first Exchange in the world to offer physically
delivered commodity derivatives contracts with sustainable requirement mandated
for delivery. In addition, the FEPO Contract is Shariah-compliant.
Bursa Malaysia Derivatives' Palm Complex offerings consolidate Malaysia's position as the leading price discovery centre for palm oil traded globally. Explore our product suite today.
Contract Specifications | |
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Contract Code | FEPO |
Underlying Instrument | Crude Palm Oil |
Contract Size | 25 Metric Tons (MT) |
Contract Months | Spot month and the next 11 succeeding months, and thereafter, alternate months up to 36 months ahead |
Trading Hours | Monday to Friday (Malaysia time)
|
Pricing Unit | Malaysian Ringgit (MYR) |
Price Limits | 1. With the exception of trades in the current delivery month, trades for future delivery of Crude Palm Oil in any month, must not be made, during any 1 Business Day, at prices varying more than 10% above or below the settlement prices of the preceding Business Day (“the 10% Limit”) except as provided below: (a) When the 10% Limit is triggered (except for the current month), the Exchange will announce a 10-minute cooling off period (“the Cooling Off Period”) for Contracts of all contract months (except the current delivery month) during which trading may only take place within the 10% Limit. (b) Following the Cooling Off Period, Contracts of all contract months will be specified as reserved for a period of 5 minutes, after which the price limit will be expanded to 15%. The prices traded for Contracts of all contract months (except the current month) must then not vary more than 15% above or below the settlement prices of the preceding Business Day (“the 15% Limit”). (c) If the 10% Limit is triggered less than 30 minutes before the end of the morning trading session, the 10% Limit will apply to Contracts of all contract months for the rest of the morning trading session and the 15% Limit will apply to Contracts of all contract months during the afternoon trading session. (d) If the 10% Limit is triggered less than 30 minutes before the end of afternoon trading session, the 10% Limit will apply to Contracts of all contract months for the rest of the afternoon session. (e) If the 10% Limit is triggered less than 30 minutes before the end of the after-hours (T+1) trading session, the 10% Limit will apply to Contracts of all contract months (except the current month) for the rest of the after-hours (T+1) trading session and the 15 % Limit will apply to Contracts of all contract months (except the current month) for the following morning and afternoon trading sessions. 2. For the purposes of paragraph 1(a), the 10% Limit will be considered triggered in the manner the Exchange may prescribe * When at least 3 non-spot month contracts are trading at the 10% Limit, the Exchange shall announce a 10-minute cooling off periods |
Minimum Price Fluctuation | MYR 1.00 / MT |
Final Settlement | Physical Delivery *All FEPO physical delivery must be Malaysian Sustainable Palm Oil (MSPO) certified. |
Why Trade FEPO? |
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Global Access
FEPO is traded electronically on CME GLOBEX®, a global electronic trading platform. Accessing CME Globex® is easy and allows individual and professional traders anywhere around the world to access all Bursa Malaysia Derivatives products.
- Risk Management
Plantation companies, refineries, exporters and millers can use FEPO to manage risk and hedge against the risk of unfavorable price movement in the physical market.
- Leveraged Trading
Gain leveraged exposure to the notional value of the underlying asset with a relatively small amount of capital (Initial Margin), magnifying the effect of a given change in price.
- Immediate Market Exposure
Global fund managers, commodity trading advisers, and proprietary traders can gain immediate exposure to the active Crude Palm Oil market in East Malaysia via FEPO.
- Spread Trading and Arbitrage between FCPO/FEPO
Spread trading is facilitated by Spread Margin and FCPO/FEPO Inter-commodity Margin Offset. Arbitrage opportunities with FCPO are available due to the prices difference between Peninsular Malaysia and East Malaysia Crude Palm Oil.
- Sustainable Physical Delivery Process
All physical delivery of Crude Palm Oil (CPO) under the FEPO contract must be sourced from Palm Oil Mills that fulfil Oil Palm Management Certification (OPMC) under the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme requirements.
Resources for Download Brochure
English | Bahasa Malaysia | Chinese(中文)
Contract Specifications
English | Bahasa Malaysia | Chinese(中文)
Traceability Document
English
Performance Bond / Margin Rates
FEPO FAQ
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