Malaysia is studying a rubber futures contract to compete with Tokyo as a benchmark, according to Bursa Malaysia Derivatives, which is partly owned by CME Group and a unit of Bursa Malaysia. It is in talks with producers and traders in Southeast Asia to assess the feasibility. The firm says that since 75% of rubber comes from Southeast Asia, “this is something that seems to be lacking.” Malaysia wants to broaden its range of financial products after establishing itself as the largest centre for palm oil trading and Islamic finance.
The Tokyo Commodity Exchange is home to the most popular benchmark for rubber futures. Contracts are also traded in Shanghai and Singapore. The bourse is looking at a futures contract for refined, bleached and deodorised palm olein.