The Shanghai Futures Exchange and its unit, the Shanghai International Energy Exchange, have agreed with Bursa Malaysia Derivatives to share information and best practices in areas of common interest.

The memorandum of understanding the pair signed on July 12 covers marketing, product research, personnel exchanges and other areas.

The SFE looks forward to deepening mutual understanding of both markets with the BMD, learning from each other, and providing more risk management tools for investors, said Wang Fenghai, general manager of the two Shanghai exchanges. China and Malaysia are natural partners in commodities trading, he said.

Samuel Ho, chief executive officer of the BMD, said he looked forward to working together and developing new products. “Beyond our operations, this collaboration will indirectly support and contribute towards China-Malaysia economic trade, given China’s position as Malaysia’s largest trading partner and rubber importer,” he said.

Southeast Asia is one of the major sources of overseas investors and is the main source of registered commodities and manufacturers for INE’s TSR 20 futures, accounting for 84 percent of all registered commodity producers for this product, Wang noted.

In the first half of this year, physical trading volume using INE’s TSR 20 futures as the pricing benchmark for cross-border transactions totaled nearly 1.4 million tons, 28 times that of 2021, according to data the SHFE released previously. The value of the goods exceeded CNY15 billion (USD2.2 billion), accounting for nearly 30 percent of China’s natural rubber imports.

The BMD is a wholly owned subsidiary of Bursa Malaysia.

Source: Yicai