Your Futures Exchange, the Exchange of the Future

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Your Futures Exchange, the Exchange of the Future
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Who we are

• Established in 2002 and commenced operations in
  2007
• Pakistans 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

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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.

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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.

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Core Values

• Merit
• Candor
• Respect
• Integrity
• Transparency
• Imagination

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Our Shareholding
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Regulatory Frame Work
Securities and Exchange Ordinance 1969 Futures
Market Bill 2016
Primary Legislation
Rules
Commodity Exchange Futures Contract Rules 2005

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

Regulations
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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

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USPs
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Snapshot of PMEX
IT Systems Trading Systems Connectivity and networks Database Disaster Recovery Application development Analytics Risk Management Margin Calculations Exposure Analysis Settlement Pricing for MTM
Market Operations Clearing and Settlement Margin Management On-line Banking Delivery Management Compliance Regulatory Affairs Regulatory Coordination Surveillance and Monitoring Discipline and Enforcement Broker Audit Legal
Business Development Product Development Research Marketing Training Customer Services Membership Issuance Transfers Broker Registration Renewals
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Geographic Breakdown of Active Brokers
City Name March 2016
Karachi 77
Lahore 30
Islamabad 15
Others 6
Total 128
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Growth Brokers vs. UINs
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Volumes - 11 to 16
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Our Offered Products
Products Contracts Contracts
  Deliverable Cash Settled
Metals Mini Gold Contract (10 grams) Tola Gold Contract Milli Tola Gold Contract   Gold 100 gram Contract Gold Kilo Contract Gold 50 100 Tola Gold 1 oz, 10 oz 100 oz US denominated Silver 500 oz,100 oz 10 oz US denominated Milli Ounce Gold Contracts in USD, EUR , GBP, CHF, CAD, AUD and JPY
Energy - Crude Oil (10 100 barrel) US denominated Brent Crude Oil (10 100 barrel) US denominated
Agricultural IRRI-6 Rice Futures Contract Weekly IRRI-6 Futures Contract Palm Olein Futures Contract Sugar Wheat Red Chilli Weekly Futures Contracts Fennel Seeds Futures Contracts I-Cotton US Denominated Copper US Denominated  
Financial - KIBOR Futures Contract
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Upcoming Products

• Hybrid Red Chilli
• Copper
• Brent Crude Oil
• Murabaha

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How to trade at PMEX?
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Why Trade at PMEX?

• Market Transparency
• Global Prices
• Price Discovery
• Counterparty Guarantee
• Risk Management
• Time-zone Convenience
• Multiple Connectivity Options

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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

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Benefits to the Red Chilli Value Chain

• Payment to farmers within a few days (not weeks
  and months)
• Low transaction cost for farmers in comparison to
  Mandi (around 7)
• Initial screening of product at the farm gate
• Extension services to help grow high-quality
  commodity

• Availability of quality certified product for
  buyers through a reliable multinational service
  provider
• Warehousing and logistics by a reliable
  multinational service provider
• Transparent and fair pricing
• Participation from across Pakistan

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PMEX Future Road Map
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• Thank you.
• QA
• Pakistan Mercantile Exchange
• www.pmex.com.pk