In a media statement issued today, the exchange said the objective was also to provide investors with greater trading opportunities amid volatility in the gold market.

The enhanced FGLD is a cash settled contract that is quoted in US dollars and settled in ringgit based on a fixed multiplier of 40.

According to the statement, the final settlement value no longer required foreign exchange rate adjustment.

The FGLD contract was suspended in March last year to allow for a review of its specifications.

Bursa Malaysia Derivatives chairman Umar Swift said the enhanced FGLD contract would provide investors with an alternative avenue to trade, thus making the Malaysian derivatives market more attractive.

Its acting director, Saleem Kader Bakas, said investors would now be able to get exposure to the international gold standard pricing without having to worry about currency conversion.

“We hope to see increased participation in the derivatives market, particularly from retail investors who are seeking an alternative to holding physical assets to safeguard their investments against inflation,” he added.