About MDEX

MDEX denotes Malaysia Derivative Exchange.It is a futures & options exchange.It is a result of the merger between the Kuala Lumpur Options & Financial Futures Exchange(KLOFFE) and the Commodity and Monetary Exchange of Malaysia(COMMEX Malaysia)on 11 June 2001.

A future and options market can be described as a continuous auction market where buyers and sellers meet to trade an ever-expanding array of derivative instruments.These instruments are based on or derived from an underlying product,such as,agricultural produce,financial products and different types of indices.

Futures and options represent basic derivative instruments.They serve as an efficient and effective price discovery and risk transfer mechanism.Such markets also serve as an important information disseminator.They complement the existing stock,money,bond and commodity markets and play a significant role in their overall development,especially in ensuring better hedging and pricing opportunities.

A futures contract is a legally binding agreement between a buyer and seller to take and make delivery of a standardised quantity and quality of an underlying instrument or commodity at an agreed price at a certain date in the future.They give market participants flexibility in both bullish and bearish market.