The Malaysian Derivatives Exchange (Bursa Malaysia) introduced US dollar-denominated Used Cooking Oil futures on Monday, with a total of 42 transactions on the first day, equivalent to 1,050 metric tonnes of Used Cooking Oil changing hands.
Bursa Malaysia Derivatives said in a statement that the launch of Used Cooking Oil futures is an important step in diversifying its product supply and making good use of its position as a global trading hub for edible oils, as currently, Used Cooking Oil is mostly traded on a spot or back to back basis, leaving many stakeholders vulnerable to price fluctuations.
Bursa Malaysia has recently signed a licensing agreement with Standard & Poor’s S&P Global Commodity Insights to use Platts UCO FOB Straits assessment pricing to estimate the final settlement price of waste cooking oil.