Bursa To Launch Enhanced Gold Futures Contract

Bursa Malaysia Derivatives will be launching its enhanced Gold Futures (FGLD) contract in 19 Sept, following its suspension in March 2021 to allow for a review of the contract specifications. The revamp of the FGLD contract is part of the Exchange’s efforts to provide investors with immediate exposure to the international gold price movements. It is also intended at providing investors with greater trading opportunities amidst gold market volatility.

The Exchange adds the enhanced FGLD will be a cash-settled contract that is quoted in US Dollars and settled n Malaysia Ringgit based on a fixed multiplier of 40, from which the final settlement value, as well as profit and loss, are derived. The final settlement value no longer requires any foreign exchange rate adjustment given that the contract’s fixed multiplier already serves as the rate to compute the MYR contract value. The enhanced FGLD contract’s final settlement price is determined by the London AM Fix Price, which is the internationally recognised gold benchmark price.

“With the enhanced contract specifications, the Gold Futures contract is aligned with the global convention, in which gold is traded in USD. This provides investors exposure to the international gold standard pricing without the corresponding need for currency conversion due to the use of a contract multiplier,” said Mohd Saleem Kader Bakas, Acting Director of Bursa Malaysia Derivatives Berhad.

Bursa Chairman Datuk Umar Swift added, “Bursa Malaysia Derivatives will continuously enhance its product offerings to meet the ever-changing market needs and assist market participants in navigating headwinds in today’s challenging environment.” .

Previous articleMalaysia And Thailand Aim To Establish Joint Timber Trade Standards
Next articleDow Stumbles As Fears Of Longer Hawkish Fed Policy Bite


Please enter your comment!
Please enter your name here