Products
USD RBD Palm Olein Futures (FPOL)
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. It allows traders and consumers to hedge against adverse price movement of palm oil, while refiners use FPOL to manage the refining margin between Crude Palm Oil against RBD Palm Olein.
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Contract Specifications | |
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Contract Code | FPOL |
Underlying Instrument | RBD Palm Olein |
Contract Size | 25 Metric Tons (MT) |
Contract Months | Spot month and the next 5 succeeding months, and thereafter, alternate months up to 24 months ahead |
Trading Hours | Monday to Friday (Malaysia time)
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Pricing Unit | United States Dollar (USD) |
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 | USD 0.50 / MT |
Final Settlement | Physical Delivery |
Options Available | OPOL |
Why Trade FPOL? |
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- Global Access
FPOL 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
Refineries and importers can use FPOL to manage risk and hedge against the risk of unfavorable price movement in the physical market.
- Manage Palm Refining Margin
Refiners can use FPOL alongside FCPO to manage their refining margins by locking in the refining margins in paper.
- 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 exposure to one of the major edible oils markets in the world.
- Regulated Trading
Trade with confidence in a secure and transparent marketplace regulated by the Securities Commission Malaysia.
Resources for Download |
Brochure
Traceability Document Alternative Delivery Notice Acceptance Notice
Delivery Notice
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