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What is Malaysia commodity exchange?
The Malaysia Commodity Exchange, also known as MCX, is a commodities futures exchange based in Malaysia. It was established in 2019 and is regulated by the Securities Commission Malaysia. MCX provides a platform for trading various commodity futures contracts, allowing participants to buy or sell contracts for delivery of specific commodities at a predetermined future date and price.

The exchange offers a range of commodities for trading, including agricultural products, energy resources, and precious metals. Some of the commodities available for trading on MCX include crude palm oil, rubber, gold, silver, and crude oil.

The Malaysia Commodity Exchange aims to facilitate price discovery, risk management, and hedging opportunities for market participants. It provides a transparent and regulated marketplace where producers, consumers, traders, and investors can manage their exposure to commodity price fluctuations. By offering futures contracts, the exchange enables participants to lock in prices for future delivery, mitigating the risks associated with price volatility.

MCX plays a significant role in Malaysia's commodity market by providing a platform for efficient price discovery, enhancing market liquidity, and promoting risk management in the commodities sector. It serves as a valuable tool for market participants to manage their commodity-related risks and capitalize on market opportunities.
The Malaysia Derivatives Exchange (MDEX) is a limited share company formed in 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 (COMEX 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. It also trades futures and options on the KLSE Composite Index, three-month KLIBOR (Kuala Lumpur Interbank Offered Rate) futures, and five-year Malaysian Government securities futures. All 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.

In summary, MDEX is a commodity exchange that provides exhaustive and convenient access to the Malaysian commodity markets. The exchange’s markets offer clients trading opportunities across a diversified range of asset classes all combined with best-in-class post-trade services.

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