Bursa Malaysia, CME in palm oil futures deal

KUALA LUMPUR, Aug 11 (Reuters) - CME Group Inc, the world’s largest derivatives exchange, will develop a U.S. dollar crude palm oil (CPO) futures contract using settlement prices of Malaysia’s ringgit contracts for trading on CME Globex.

CME CME.O will work with stock exchange operator Bursa Malaysia BMYS.KL to offer the cash-settled futures contract in the United States aimed at globalising the Malaysian CPO futures market, a statement from the two companies said.

The two parties will also explore trade matching services, product licensing and minor cross-equity investments in a partnership still subject to regulatory approval.

The Chicago-based exchange operator said the proposed partnership will increase its presence in Asia and expand its transaction processing business opportunities.

Specific terms of the partnership will be announced later, the two exchanges said in a statement.

Bursa has introduced a dollar-based palm oil contract KUPOc3.

Reporting by Julie Goh; Editing by David Chance