APEX is targeting to launch its first product, a refined palm olein futures contract. The key advantages of palm olein futures are:
FOB physical delivery with delivery ports that are located Malaysia and Indonesia along the Straits of Malacca. 85% of global palm oil production and 91% of international palm trade takes place in Malaysia and Indonesia.
By using USD as the pricing currency and accepting RMB and other currencies as acceptable margin collateral, APEX’s palm olein futures contract is in line with international trade practices and avoids the risk of currency price fluctuations.
With the impending launch of APEX’s palm olein futures contract, it aims to provide an alternative venue to the global palm oil trading industry and serves as a new avenue for hedging and arbitraging purposes.