In the Commodity market, a composite version of an option is an option in which although the underlying asset is traded by default in one currency (i.e., its base currency), the payout is to be settled in another currency.
It is important to note that because a composite option does not fix the <base currency>/<payout currency> spot rate it leaves you exposed to the FX risk—to any fluctuations in that spot rate between the trade date and the expiry date.
In SDX Commodities & Energy, for any instrument you can enter into a composite version by simply changing its default base currency. That is, changing the base currency affects the term structure used to price the instrument, and changes the payout currency.
For supported instruments in the system, once you have changed the base currency you can turn the instrument into a quanto version.