Bursa Malaysia, the Malaysian Stock Exchange, is to offer a gold futures product. It will trade on Bursa Malaysia from 7 October 2013.
This is a first step for the Kuala Lumpur-based exchange into hard commodities futures. In the past, its futures offerings have concentrated on soft commodities. Specifically that has encompassed an array of futures products focused on palm and palm kernel oil, offered in crude and refined forms and denominated in multi-currencies.
The new gold product has been launched by Bursa Malaysia Derivatives Berhad and it will trade on CME Globex.
Contracts are denominated in Malaysian Ringgits and their size is 100 grammes of gold. There are a variety of tenors for the contracts, with the longest period being for one year. The maximum amount of contracts that one single investor can hold is 25,000.