Metal Trading at Bursa Malaysia ?
Filed Under (Bursa News) by Webmaster on 11-03-2010
Tagged Under : Bursa Malaysia, metal trading
Bursa Malaysia plans to trade metal and add new specifications for crude palm oil (CPO) on Bursa Suq Al-Sila’ this year, as volume was expected to see a huge growth on local and foreign interests.
Raja Teh Maimunah Raja Abdul Aziz, Bursa Malaysia’s global head of Islamic Markets, did not discount the possibility the daily trading volume of Bursa Suq Al-Sila’ would triple or quadruple this year due to increasing number of local and foreign banks participation especially from Gulf Cooperation Council.
“We continue to see an increasing trend as volume in February, a shorter trading month, has exceeded January’s,” she told reporters at the second day of Palm and Lauric Oils Conference and Exhibition: Price Outlook 2010/2011 here today.
Raja Teh Maimunah said almost 90 per cent of domestic banks traded on Bursa Al-Sila’ including three global banks.
“I’m not still at liberty to tell you the daily trade, but you would be able to figure out by looking at Islamic banking assets in the country,” she said.
Launched in August last year, Bursa Suq Al Sila’ is a purposefully-designed exchange-traded platform to facilitate commodity murabahah transactions.
It is the first Internet-based platform in the world with CPO as its underlying base commodity.
“We are working on metal and other specifications of CPO. It has various specifications and Bursa Suq Al-Sila now only has one,” she said, when asked on the specification to be traded.
She said the different specifications would be introduced in stages.
On the reason to introduce metal trading, Raja Teh Maimunah said the exchange was working with commodity suppliers who had the necessary volume and accessibility for such an undertaking.
“Players of metal commodity are familiar with murabahah and the potential is huge,” she said
