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Bursa Malaysia Derivatives Berhad announced on 1 July that it will be launching an after-hours night trading session by the fourth quarter of this year.

The exchange, which operates the benchmark crude palm oil futures contract (FCPO), said night trading would enhance the attractiveness of the Malaysian derivatives market to traders around the world.

“Available for most Bursa Malaysia derivatives products, night will align the exchange with global market practices. It sets to enhance price discovery of Bursa Malaysia Derivatives’ offerings given the substantial growth in derivatives market participation since 2019,” the exchange said.

“Last year, the total number of contracts traded registered a 35% growth, increasing to 18.2M contracts from 13.5M contracts in 2019, with foreign participants contributing 46% of the total trading volume.”

In addition, the total monthly trading volume for the exchange’s FCPO contract renewed its all-time high of 1.7M contracts on 30 June, equivalent to 42.6M tonnes of crude palm oil traded. This surpassed a previous record of 1.66M contracts traded in March 2020.

“The recent volatility in crude palm oil prices demonstrates the need for night trading,” said Bursa Malaysia CEO Samuel Ho. “It will provide an avenue for market participants to better manage their price risk exposure based on real-time global developments in different time zones.”