DJ Bursa Malaysia Raise Palm Oil Margins; Limit Sharp Declines 08.08.2011
KUALA LUMPUR (Dow Jones)--Bursa Malaysia Derivatives Bhd. raised margin requirements on crude palm oil trading as part of risk-control measures, the exchange said Monday.
The minimum amount of cash that must be deposited when borrowing from brokers to trade palm oil futures for non-spot months was raised to MYR6,250 per contract from MYR5,250, the exchange said in an email to brokerage firms.
The new rates "will continue to apply until further notice," it said.
The revised margin requirements may limit a sharp fall in the palm oil market when regional equities and commodities are broadly lower after ratings agency Standard & Poor downgraded U.S. government's triple-A rating Friday.
Benchmark October CPO contract was trading at MYR3,040 a metric ton, down 0.35 from Friday's close.
The BMD is a unit of Bursa Malaysia Bhd. (1818.KU)