MALAYSIA: Bursa Malaysia Derivatives to Launch Enhanced Gold Futures Contract

Friday September 16 2022

Bursa Malaysia Derivatives Berhad announced that will be launching its enhanced Gold Futures (FGLD) contract on 19^th September 2022, 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 enhanced FGLD is a cash-settled contract that is quoted in US Dollar (USD) and settled in Malaysia Ringgit (MYR) 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.

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