Crude Palm Oil Futures (FCPO) Structured Warrants
What is FCPO Contract?
- The Crude Palm Oil Futures (FCPO) contract is traded on Bursa Malaysia Derivatives and denominated in Malaysian Ringgit (MYR). It serves as a global price benchmark for crude palm oil.
- FCPO contract is used by edible oils and fats industry players, fund managers, financial institutions and other market participants to hedge against price risks.
What is the contract size for FCPO?
 Each FCPO contract represents 25 metric tons (MT) of Crude Palm Oil (CPO) |  Price quoted = MYR/MT (e.g. MYR4,000) |
 For every 1 tick move in the price, the tick value is MYR25 |  1 MT exposure to CPO depends on Exercise Ratio of the FCPO Structured Warrants |
What are FCPO Structured Warrants and How does it work?
Structured Warrants can be issued as CALL or PUT Warrants. FCPO Structured Warrants’ price movements are dependent on the price movements of referenced FCPO contract.
| Call Warrant | Gives the holder the right to BUY the underlying asset at Exercise Price |
| Put Warrant | Gives the holder the right to SELL the underlying asset at Exercise Price |
| Exercise Price | The predetermined price/level for the warrant holder to buy or sell the underlying asset. It is used to calculate cash settlement amount at expiry |
| Expiration Date | The date the warrant expires, where the right of the warrant holder to exercise the warrant ceases |
FCPO STRUCTURED WARRANTS VS FCPO CONTRACT
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Key FCPO Structured Warrants Characteristics
Underlying Asset
FCPO Structured Warrants typically track the third month in the FCPO contract series on Bursa Malaysia Derivatives. For example, a warrant expiring on 31 July 2025 references the October 2025 FCPO contract. Issuers may also track a predetermined month’s futures contract on listing date or roll the referenced futures contract on a monthly basis.*
Market Influence
Given the underlying asset of FCPO Structured Warrants, FCPO is affected by weather, supply and demand, geopolitical risks and trade embargo.
Right vs. Obligation
Holders of FCPO Structured Warrants have the right but not the obligation to BUY or SELL at a predetermined Exercise Price.
*Note: Investors are advised to consult with the Issuers for further clarification
FACTORS INFLUENCING FCPO PRICE
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Trading Hours
FCPO structured warrants can be traded from Monday to Friday during Bursa Malaysia’s exchange hours excluding public holidays.
Market making hours for FCPO structured warrants depend on the exchange hours of the underlying reference asset. Investors are advised to refer to available resources or to contact the Issuer for information on market-making hours, as these may vary.
Cash Settlement (Amount Calculation)
The Cash Settlement Amount in respect of the Exercise Amount shall be an amount in cash (if positive), payable in MYR, calculated as follows:
| Call Warrants | Put Warrants |
| Cash Settlement = Exercise Amount x 1/Entitlement x (Settlement Price – Exercise Price) – Exercise Expenses | Cash Settlement = Exercise Amount x 1/Entitlement x (Exercise Price - Settlement Price) – Exercise Expenses |
Note: Investors are advised to refer to the Term Sheet for information on settlement price calculation methods.
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