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PMEX Lecture 18

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13 views21 pages

PMEX Lecture 18

Uploaded by

minhasakbar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Your Futures Exchange, the Exchange of the Future

Who we are

Established in 2002 and commenced operations in 2007

Pakistan’s first and only multi-commodity futures exchange

Licensed and regulated by Securities and Exchange Commission of Pakistan (SECP)

Demutualized Exchange and the shareholding is completely institution based

Sophisticated, multi-dimensional infrastructure and state-of-the-art technology

Offers a complete suite of services i.e. trading, clearing and settlement, custody of
assets as well as back office management under one roof

21 hour seamless trading environment

Diverse product portfolio


Vision

To be amongst the leading mercantile


exchanges of the region extending from
Istanbul to Jakarta in terms of knowledge,
efficiency, innovation, value traded,
credibility and standing.
Mission
To build and develop PMEX capacity to satisfy the
diverse needs of our customers, contribute
towards shareholders equity and constantly
endeavour to integrate national supply chains
with domestic and international Product,
Commodity and Financial markets through
innovative financial products and instruments.
Creating state of the art trading and settlement
platforms and infrastructure that engenders
confidence, brings the domestic economic players
to the Exchange platform thereby creating
maximum economic value for our stakeholders
and the country.
Core Values

Merit
Candor
Respect
Integrity
Transparency
Imagination
Our Shareholding

Pak Kuwait Investment Company Lim-


Zarai Taraqiati Bank Limited; 2.90% ited; 2.90%
Pak Brunei Invest-
ment Company Lim-
ited; 6.80%
National Bank of
LSE Financial Service Pakistan Ltd; 33.98%
Ltd; 7.25%
ISE Towers REIT Pakistan Stock Exchange; 28.41%
Management Ltd;
17.76%
Regulatory Frame Work
Securities and
Primary Legislation Exchange Ordinance
1969
Futures Market Bill
2016

Commodity Exchange
Rules
& Futures Contract
Rules 2005

1. PMEX Regulations
2. Market Making
Regulations Regulations
3. Default Regulations
International Affiliations

Association of Futures Markets (AFM)


Futures Industry Association (FIA)
MoUs
Borsa Istanbul
Izmir Commodity Exchange
Dubai Gold & Commodity Exchange (DGCX)
More MoUs planned in the future with South Africa and
Iran
USPs

Only Regulated Futures Exchange in the Country

Guaranteed Settlement

Segregation of Funds

Accessible Globally / Direct Market Access

21 hour Operations
Snapshot of PMEX
IT & Systems Analytics
 Trading Systems  Risk Management
 Connectivity and networks  Margin Calculations
 Database & Disaster Recovery  Exposure Analysis
 Application development  Settlement Pricing for MTM

Market Operations Compliance & Regulatory Affairs


 Clearing and Settlement  Regulatory Coordination
 Margin Management  Surveillance and Monitoring
 On-line Banking  Discipline and Enforcement
 Delivery Management  Broker Audit
 Legal

Business Development Membership


 Product Development  Issuance
 Research  Transfers
 Marketing  Broker Registration
 Training  Renewals
 Customer Services
Geographic Breakdown of Active Brokers

City Name March 2016


Karachi 77
Lahore 30
Islamabad 15
Others 6

Total 128
Growth – Broker’s vs. UIN’s
Volumes - ‘11 to ‘16
Our Offered Products

Products Contracts
Deliverable Cash Settled
Gold 100 gram Contract
Gold Kilo Contract
Mini Gold Contract (10 grams) Gold 50 & 100 Tola
Tola Gold Contract
Metals Gold 1 oz, 10 oz & 100 oz US $ denominated
Milli Tola Gold Contract
Silver 500 oz,100 oz &10 oz US $ denominated
Milli Ounce Gold Contracts in USD, EUR , GBP, CHF, CAD,
AUD and JPY
Crude Oil (10 & 100 barrel) US $ denominated
Energy -
Brent Crude Oil (10 & 100 barrel) US $ denominated
IRRI-6 Rice Futures Contract
Weekly IRRI-6 Futures Contract
Palm Olein Futures Contract I-Cotton US $ Denominated
Agricultural Sugar Copper US $ Denominated
Wheat
Red Chilli Weekly Futures Contracts
Fennel Seeds Futures Contracts
Financial - KIBOR Futures Contract
Upcoming Products

Hybrid Red Chilli


Copper
Brent Crude Oil
Murabaha
How to trade at PMEX?

Submit Funds to Place order on


Open a Trading
Choose a Broker Broker for PMEX Trading
Account
Trading System
Why Trade at PMEX?

Market Transparency
Global Prices
Price Discovery
Counterparty Guarantee
Risk Management
Time-zone Convenience
Multiple Connectivity Options
Red Chilli Trade
Positive Outcomes
Successful establishment of warehousing & quality certification infrastructure at Kunri
Over 50 sellers/buyers/trades registered for Red Chilli Trade
Over 600 Tons traded
Payments to farmers processed with 24 hours of trade

Issues Identified
No transparent benchmark price is available
A very small portion of crop comes to Mandi
There is a lot of documentation required to be fulfilled by farmers to get WHT exemption
Non farmer is reluctant to participate at the trading platform due to WHT tax
For Warehouse Receipt Financing (WRF), establishment of proper warehouses is a must
Benefits to the Red Chilli Value Chain
Availability of quality certified Payment to farmers within a few
product for buyers through a days (not weeks and months)
reliable multinational service
provider Low transaction cost for farmers in
comparison to Mandi (around 7%)
Warehousing and logistics by a
reliable multinational service Initial screening of product at the
provider farm gate

Transparent and fair pricing Extension services to help grow


high-quality commodity
Participation from across
Pakistan
PMEX Future Road Map
Thank you.
Q&A

Pakistan Mercantile Exchange


www.pmex.com.pk

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