FPOL is a Free on Board (FOB) physically delivered US Dollar (“USD”) denominated Refined, Bleached and Deodorised (RBD) Palm Olein Futures contract traded on Bursa Malaysia Derivatives (BMD).
As a listed derivatives on BMD, FPOL will provide a transparent price discovery on a regulated trading environment. Traders and consumers can now hedge against Palm Oil adverse price movement with confidence as BMD Clearing House guarantees the performance of all trades. Refiners can also use FPOL to manage the refining margin between Crude Palm Oil against RBD Palm Olein.
Manage RBD Palm Olein Price Risk
End users and importers can use FPOL to manage risk and hedge against the risk of unfavourable price movement in the physical market.
Manage Palm Refining Margin
Refiners can use FPOL to manage their refining margins. Together with FCPO, refiners can now lock in their refining margins in paper. This can be achieved with going long on FCPO and short on FPOL.
Exposure to RBD Palm Olein Price Movements
Traders can use FPOL to gain leveraged exposure to movements in RBD Palm Olein prices.
Gain immediate exposure to commodity market
Via FPOL, global fund managers, commodity trading advisers and proprietary traders are able to gain exposure to one of the largest edible oil in the world.
Contract Specifications
| Contract Code | FPOL | ||||||||||||
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| Underlying Instrument | RBD Palm Olein | ||||||||||||
| Settlement Method | FOB Physical Delivery at PK / PG with multiple size of 500MT. Others will be cash settled against the Final Settlement | ||||||||||||
| Contract Size | 25 metric tons | ||||||||||||
| Price Quotation | US$ per metric ton | ||||||||||||
| Minimum Price Fluctuation | US$0.50 per metric ton | ||||||||||||
| Contract Months | Spot month and the next 5 succeeding months, and thereafter, alternate months up to 24 months ahead. | ||||||||||||
| Trading Hours |
Monday to Friday
Business Day:
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| Daily Price Limits | With the exception of trades in the spot month, trades for future delivery of Crude Palm Oil in any month shall not be made, during any one 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. When at least 3 non-spot month contracts are trading at the 10% Limit, the Exchange shall announce a 10-minute cooling off period ("the Cooling Off Period") for all contract months (except the spot month) during which trading shall only take place within the 10% Limit. Following the Cooling Off Period, all contract months shall be specified as interrupted for a period of 5 minutes, after which the prices traded for all contract months (except the spot month) shall not vary more than 15% above or below the settlement prices of the preceding Business Day ("the 15% Limit"). If the 10% Limit is triggered less than 30 minutes before the end of the first trading session, the following shall apply:-
If the 10% Limit is triggered less than 30 minutes before the end of the second trading session, the 10% Limit shall be applied to all contract months (except the spot month) for the rest of the Business Day. | ||||||||||||
| Final Trading Day | 25th Calendar Day, 2 months prior to delivery month. If 25th is a holiday it will be the preceding day. For example, a June delivery contract will expire on 25th April. Please refer to FOB and ADP delivery mechanism as mentioned above. | ||||||||||||
| Contract Grade and Delivery Points | RBD Palm Olein of good merchantable quality physically delivered FOB at Port Klang and Pasir Gudang.
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| Speculative Position Limit | The maximum number of net long or net short positions which a client or a participant may hold or control is:
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| Minimum Deliverable Size | Multiple of 20 Contracts or 500 MT. All other remaining contracts will be cash settled against the Final Settlement. |
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