View source for Malaysia Derivatives Exchange

The '''Malaysia Derivatives Exchange''' (MDEX), also known as Malaysian Distribution Exchange, is a limited share company formed during June 2001 in [[Malaysia]] through the merger of the Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) and the Commodity and Monetary Exchange of Malaysia (COMMEX Malaysia). It is a subsidiary of the [[Kuala Lumpur Stock Exchange]] (KLSE).

MDEX is fully electronic, using the KLOFFE Automated Trading System (KATS). The exchange's most active contract is crude [[palm oil]] [[Futures contract|futures]]. It also trades futures and [[option (finance)|options]] on the KLSE Composite Index, three-month KLIBOR (Kuala Lumpur Interbank Offered Rate) futures, and five-year Malaysian Government [[securities]] futures. All [[derivative (finance)|derivatives]] except crude palm oil are cash settled. The KATS system has two trading sessions, separated by a lunch break. Trading is done Monday through Friday, from 8:45 a.m. to 6 p.m.

==History==
The '''Kuala Lumpur Commodity Exchange''' (KLCE) was the first [[futures exchange]] in [[Malaysia]] and all of [[Southeast Asia]], established in 1980. In 1996, the Malaysian Monetary Exchange was incorporated to assist in the exchange's expansion to financial futures. The Commodity and Monetary Exchange of Malaysia (COMEX) succeeded the KLCE and the Malaysia Commodity Exchange, a subsidiary of the former KLCE. It merged with the Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) in December 2000 and formed the Malaysia Derivatives Exchange (MDEX).

==Strategic Partnership==
The MDEX entered a partnership with [[Chicago Mercantile Exchange]] to improve accessibility to its global offerings. This partnership includes licensing of the settlement prices of the crude palm oil futures (FCPO) to establish Malaysia as the global benchmark for the commodity.

The partnership involves swap of ownership. [[Chicago Mercantile Exchange]] holds 25% of the equity stake, while the remaining is held by Bursa Malaysia Berhad.

== See also ==
* [[List of stock exchanges in the Commonwealth of Nations]]

== External links ==
* [http://www.bursamalaysia.com/market/derivatives/ Official Website of Malaysia Derivatives Exchange]
* [http://www.klibor.com/ Official Website of Malaysia KLIBOR]

{{Economy of Malaysia}}
{{Palm oil}}

[[Category:2001 establishments in Malaysia]]
[[Category:Finance in Malaysia]]
[[Category:Palm oil production in Malaysia]]
[[Category:Bursa Malaysia]]