March 02, 2018 – Karachi: Pakistan Mercantile Exchange (PMEX), Pakistan’s first and only multi-commodity futures exchange, signed Memorandum of Understanding (MoU) with Dalian Commodity Exchange (DCE), China at the PMEX Head Office in Karachi. A seven member delegation of DCE led by their Chairman visited PMEX for the signing ceremony. The objective of MOU is to seek cooperation in broader fields with emphasis on collaborations including market development, business cooperation, experience sharing, etc.
This is the fifth international collaboration for PMEX. In the past, MoU’s have been signed with four exchanges namely; Borsa Istanbul, Izmir Commodity Exchange (ICE), Dubai Gold & Commodities Exchange (DGCX) and Iran Mercantile Exchange (IME).
Commenting on the occasion, Mr. Ejaz Ali Shah, Managing Director of PMEX, said, “PMEX is pleased to sign an MoU with DCE. Pakistan-China bilateral ties are time tested and are expected to further consolidate with the commencement of work on China Pakistan Economic Corridor (CEPC), which is expected to be a game changer for the region and beyond. PMEX strongly believes that the enhancement of transportation linkages and the development of other related infrastructure under the CPEC will pave the way for enhanced trade between the two countries. Signing of this MoU lays the groundwork for future cooperation between both the Exchanges to facilitate trade between the neighboring counties.”
Mr. Li Zhengqiang, Chairman of DCE, said “DCE has always attached high importance to international cooperation with foreign exchanges. As the ‘One Belt and One Road’ initiative progresses over the years, the all-weather strategic partnership between China and Pakistan has continued to deepen, with new achievements continuously made. PMEX offers a diverse range of domestic and international commodities and financial futures. The signing of this MoU will facilitate both sides to explore more opportunities for business cooperation as well as create new channels for long-term cooperation. It will benefit the development of the financial markets of both countries, and add support to the national government’s ‘One Belt and One Road’ initiative and DCE’s internationalization strategy.”
February 26, 2018 – Karachi: The Pakistan Mercantile Exchange (PMEX), country’s first and only multi-commodity futures exchange, has provided MetaTrader 5 to all its market participants. Now all PMEX members will be able to benefit from advanced features of MetaTrader 5 and offer efficient trading and investment facilities to their clients.
The cutting-edge functionality of the popular platform is now available to Pakistani traders, including the most powerful automated trading possibilities through the desktop application, mobile applications for iOS and Android devices and the full-featured web platform.
Mr. Ejaz Ali Shah, Managing Director, PMEX, said, “PMEX is proud to announce the availability of MT5 for all its Market Participants. The offering of MT5 by the Exchange is in line with its technology overhaul strategy. The Exchange has always remained proactive in identifying and exploring ways for improving its existing technology infrastructure so our members & clients can have an enriched trading experience.”
“In early 2015, we announced the MetaTrader 5 integration with PMEX, and a month later one of Pakistani brokers started offering the new platform to their clients,” says Gaies Chreis, COO of MetaQuotes Software. “Now, after three years, PMEX completely switches to our software. This is definitely a beneficial step for all members of the exchange. Operating on MetaTrader 5, PMEX will be able to smoothly connect institutional clients, while brokers will be able to provide their traders fast and reliable access to the exchange. As for traders, they will certainly appreciate the comfort of trading through the advanced ecosystem of the fifth generation platform. Our wish is for other exchanges to follow the example of PMEX.”
February 20, 2018 – Karachi: Pakistan Mercantile Exchange Limited (PMEX), country’s only multi-commodity futures exchange, facilitated the electronic Murabaha transaction between Bank Alfalah and Meezan Bank on PMEX Shariah Compliant Trading platform (SCTP). Mr. G. M. Abbasi, Director, Islamic Banking, State Bank of Pakistan, Mr. Nauman Ansari, President & CEO, Bank Alfalah, Mr. Ejaz Ali Shah, Managing Director, PMEX and Syed Ali Sultan, Group Head, Treasury, Capital Markets & Financial Institutions, Bank Alfalah were present at the occasion.
Feb 13, 2018 – Karachi: Pakistan Mercantile Exchange Limited (PMEX), country’s only multi-commodity futures exchange facilitated the country’s third electronic Murabaha transaction and the first transaction for a Modaraba between Meezan Bank Limited and First Al-Noor Modaraba.
State Bank of Pakistan of Pakistan (SBP) had earlier allowed banks to conduct transaction on PMEX Sharia Compliant Trading Platform (SCTP) in a limited capacity for the pilot period of three months.
The conclusion of various transactions in quick succession has written a new chapter in the history of Islamic banking. All market participants under the able guidance of State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) are striving hard to bring Islamic banking at par with the conventional banking in the country. As these transactions become a norm, Islamic financial institutions will be able to manage their liquidity in a convenient, transparent and Shariah-compliant manner. This will also pave the way for the Government of Pakistan in borrowing money in a Shariah compliant manner.
Commenting on the occasion, Managing Director of PMEX, Mr. Ejaz Ali Shah, said, “ I would like to congratulate First Al Noor Modaraba for conducting their first transaction at the PMEX platform with Meezan Bank. The joint efforts of apex regulators, Sharia advisors, Market Participants and financial institutions and the Exchange has successfully resulted in the formation of a new ecosystem which will pave the way for the development of Islamic Money Market.”
Mr. Jalaluddin Ahmed, CEO of First Al-Noor Modaraba (FAM) said, “We are pleased to announce that our Modaraba has participated in the electronic Murabaha transaction through Meezan Bank Limited using the Shariah Compliant Trading Platform (SCTP) at PMEX. Moreover, FAM is extremely thankful to Meezan Bank for providing the necessary expertise in executing the said transaction and are also grateful to PMEX for providing a smooth structure”.
Mr. Basheer A. Chowdry, Chairman, NBFI & Modaraba Association of Pakistan said, “I congratulate First Al-Noor Modaraba for participation in the electronic Murabaha Transaction. This would open a new era to the modaraba sector to diversify their activities in the commodity market.”
December 26, 2017 – Karachi: Pakistan Mercantile Exchange Limited (PMEX), country’s only multi-commodity futures exchange, has achieved yet another breakthrough by facilitating the country’s first electronic Murabaha transaction, which in essence will pave the way for an Islamic Money Market. Meezan Bank was the Shariah Technical Services Provider for development of this Shariah-compliant trading platform at PMEX.
State Bank of Pakistan of Pakistan (SBP) had earlier allowed banks to conduct transaction on PMEX Sharia Compliant Trading Platform (SCTP) in a limited capacity for the pilot period of three months. The first electronic commodity Murabaha transaction was conducted between Meezan Bank Limited (MBL) and Dubai Islamic Bank Pakistan Limited (DIBPL) on December 26, 2017.
This is a revolutionary and landmark achievement in the history of Pakistan, which has the potential of bringing Islamic banks at par with their conventional counterparts in terms of managing excess liquidity in a convenient, transparent and Shariah-compliant manner. Islamic Financial Institution’s (IFI’s) can utilize this facility to deploy liquidity to all potential segments, including the government. The Exchange has ensured, in consultation with its Sharia Advisor, Dr. Imran Usmani, that the product is completely Shariah-compliant. The product has been vetted by Sharia Board of State Bank of Pakistan (SBP) Chaired by Respected Justice (R) Muhammad Taqi Usmani, Securities & Exchange Commission of Pakistan (SECP) and Islamic Banking Sub Committee of Pakistan Banks’ Association.
Commenting on the momentous occasion, Managing Director of PMEX, Mr. Ejaz Ali Shah, said, “Today is a historic day as we have embarked upon a journey which will revolutionize the landscape of Pakistan’s Islamic Financial Industry. PMEX’s Sharia Compliant Trading Platform, developed to facilitate Electronic Commodity Murabaha, is a prime example where all stakeholders, i.e. Regulators (both SECP & SBP), Financial Industry Players, Sharia Scholars and Private Sector Institutions have come together, with the Exchange at the core, for this landmark achievement. Over three and a half years of perseverance by the Exchange has translated into an ecosystem which will keep bearing fruits for years to come.”
PMEX Sharia Advisor, Dr. Imran Usmani, said, “This product will not only allow the country’s Islamic Financial Industry to manage their liquidity needs but would also provide opportunity to Banks as well as the Government to meet their financial needs in a Shariah-compliant manner and would enable SBP to offer Shariah-compliant liquidity management solutions to banks”.
Meezan Bank’s President and CEO, Mr. Irfan Siddiqui said “Management of excess liquidity has always been a key challenge for Islamic banks. This product provides an avenue through which not only banks, but also the Government will be able to raise liquidity, with ease, in a completely Shariah-compliant manner”.
The country’s Islamic Financial sector is growing at a rapid pace of over 20% over the last 5 years with an asset & deposit base of over Rs. 2 Trillion & Rs. 1.7 Trillion respectively. PMEX believes that the evolution of this product would not have been possible without the guidance and support of SECP, SBP, PMEX Board, Meezan Bank, Dubai Islamic Bank Pakistan Limited and Hascol Petroleum Limited. The Exchange is confident that, based on the keen interest and enthusiasm of the IFI’s, Commodity Murabaha would strengthen the Islamic financial sector of the country, eventually serving as an industry benchmark and first choice for the IFI’s.
KARACHI: October 04, 2017: A delegation of PMEX visited China from Sep 25 to Sep 29. During this visit, PMEX officials met with the management of Dalian Commodity Exchange (DCE) and Zhengzhou Commodity Exchange (ZCE).
In these meetings, matters relating to development and enhancement of derivatives and financial markets in Pakistan and China through building mutual collaboration were discussed. The top of the agenda item was discussion regarding cross-listing of commodities. PMEX presented a business model and the regulatory framework for the cross-listing. The other items discussed included commodities to be cross listed, movement of foreign exchange, warehousing and logistics. The Chinese commodity exchanges expressed keen interest in cross-listing of commodities and ensured PMEX of their full cooperation and support in achieving this objective.
“Pakistan-China bilateral ties are time tested and are expected to further consolidate with the commencement of work on China Pakistan Economic Corridor (CEPC), a flagship program of One Belt One Road, which is a game changer for the region and beyond. PMEX strongly believes that the enhancement of transportation linkages and the development of other related infrastructure under the CPEC will pave the way for enhancing the trade between the two countries”, said Mr. Ejaz Ali Shah, Managing Director, PMEX. He further said “The cross-listing of products will go a long way in achieving PMEX’s vision of linking its business to the real economy and in the process showcasing the Pakistan agriculture produce at a global trading platform.”
PMEX is of the view that cross listing of commodities using futures derivatives will spread out the risk of local farmers, traders and processors by offering exposure in more than one markets while mitigating the change in price. Moreover, this will help the local producers of both the countries to offer their products to a much larger community of traders and investors. The added advantage is that buyers will get certified quality as well as efficient warehousing and logistics facilities.
KARACHI: October 04, 2017: Responding to the ever increasing demand of market participants, Pakistan Mercantile Exchange Limited (PMEX), the country’s only multi-commodity futures exchange, has listed contracts of higher denomination of actively traded commodities. These commodities include Silver (5,000 Ounce), Copper (25,000 Pounds), Crude Oil (1,000 Barrels) and Brent Crude Oil (1,000 Barrels). With the introduction of these contracts, PMEX now offers 13 international commodities in 20 denominations. Introduction of these contracts will facilitate the high net worth clients both individuals and corporates to participate in the market more actively. These contracts were made available for trading from Wednesday, October 4, 2017.
These futures contracts are of internationally traded denominations which are actively traded at global exchanges. The price quotation of these contracts is in USD but margins are received in PKR. Previously, PMEX offered trading in Silver (10, 100 and 500 Ounces), Copper (1,000 Pounds) and WTI Crude Oil & Brent Crude Oil (10 and 100 Barrels).
Speaking at the launch, Mr. Ejaz Ali Shah, Managing Director, PMEX said, “It is the endeavour of the Exchange to offer futures contracts of different commodities in multiple denominations for trading that not only adds depth to the market for the existing investors, but also attracts larger investors seeking trading, investing and hedging opportunities to diversify their portfolio.”
Karachi – May 23, 2017: Pakistan Mercantile Exchange (PMEX), the country’s only multi-commodity futures exchange is relentlessly striving to broaden its product range by launching a diversified product mix. In this regard, PMEX has launched Cash Settled Futures Contracts of Natural Gas and Platinum. These Contracts have been duly approved by the Securities and Exchange Commission of Pakistan (SECP) and have been made available for trading from Tuesday, May 23, 2017.
With the introduction of Natural Gas and Platinum Futures Contracts, the Exchange’s cash settled product portfolio now offers a total of 13 different commodities of varied denominations.
The Natural Gas contracts are being offered in 1,000 & 10,000 mmbtu denominations, whereas Platinum contracts are being offered in 5 & 50 troy ounces denominations. Additionally, the price quotation for all contracts are in USD, however, margins are paid in PKR.
At the launch of the new Futures Contracts, Mr. Ejaz Ali Shah, Managing Director, PMEX said: “The Exchange is delighted to offer two more products and is confident that with their introduction, brokers will be able to cater another niche market and investors will also be able to diversify their investment portfolio. I am thankful to the Securities & Exchange Commission of Pakistan (SECP) for their continued patronage to PMEX. The diversified product range available to market participants today would not be possible without the visionary resolve of the SECP.”
Natural gas is one of the most significant sources of energy in the world and is therefore critical for global economic growth. In Pakistan, natural gas is produced in significantly large quantity. Its main uses are in power generation, transportation and domestic consumption.
Platinum is a dense, malleable, ductile, highly unreactive, precious, and transition metal. It is used as a catalyst in laboratory equipment, electrical contacts and electrodes, thermometers and jewelry. In Pakistan, platinum is used in various manufacturing industries.
Market participants are encouraged to visit our website www.pmex.com.pk to view details of the product offerings and related information.
Karachi – Tuesday, May 09, 2017: Pakistan Mercantile Exchange (PMEX), the country’s only commodity futures exchange, launched Wheat Weekly Futures Contracts duly approved by the Securities and Exchange Commission of Pakistan (SECP).
This is the third listing of an agricultural commodity on PMEX electronic trading platform within the last two years after red chilli and super basmati paddy rice where compulsory delivery is a key feature. The trading of Wheat at PMEX will provide an opportunity to the buyers to procure quality certified product as per contract specifications in an efficient and transparent manner. It will also help farmers to get better price and timely payment of their produce sold. To launch Wheat the Exchange has collaborated with SGS Pakistan for grading & quality certification and Pakistan Agriculture Coalition (PAC) for farmers’ awareness & trade facilitation to ensure the increased participation of farmers at the Exchange. The listed contracts are based on district Sheikhupura/Muridke, the major wheat growing districts of Punjab. Furthermore, on a similar pattern as red chilli, listing of this contract will pave the way for collateralized lending by banks against warehouse receipt instead of land papers.
Wheat is the most popular food crop of Pakistan and its products are used in a number of ways. Pakistan is the world’s 7th largest wheat producer and its contribution is 3.48% of world production. Being the staple diet of majority of people in Pakistan, it dominates all crops in acreage and production. Wheat accounts for 9.9 percent of the value added in agriculture and 2.0% of GDP of Pakistan. Punjab is the major wheat producing province of Pakistan and it alone contributes around 75 % of total production followed by Sindh 16 % and remaining 9 % from Khyber Pakhtunkhwa (KP) and Balochistan.
At the launch of the Wheat Contract, Mr. Ejaz Ali Shah, Managing Director, PMEX said, “Launching of Wheat Futures at the Exchange brings us one step closer of our resolve to connect our business operations to the local economy. With the availability of this new contract, it would become convenient for market participants to trade in a unified and transparent manner. The national level participation of buyers and sellers across Pakistan will enhance the price discovery process of the commodity manifold, bring efficiency in the quality production and provide an opportunity to farmers to get a better price of their produce.”
Karachi – May 04, 2017: PMEX unveiled its newly redesigned website which boasts user-friendly experience for current and future market participants and business partners. The new website combines elements of highly-intuitive interface such as contemporary visual appeal, easy navigation, improved functionality and rich content. The website has been designed using cutting-edge technology, making the site compatible with new age browsers, smartphones and tablets thus allowing users to access information on the go.
Commenting on the new website, Mr. Ejaz Ali Shah, Managing Director PMEX said “We are delighted to welcome visitors to our new website. As we continue to grow and increase our footprint, we believe our mobile-friendly website will keep providing access to valuable and timely information.”
The newly built website will be updated on a regular basis with news of product launches, notifications, regulations, business activity, corporate milestones, events and financial information. The Exchange invites its visitors to explore the new website by visiting www.pmex.com.pk and learn more about PMEX and its products & services.
Karachi – December 19, 2016: Pakistan Mercantile Exchange (PMEX), the country’s only multi-commodity futures exchange, launched Brent Crude Oil Futures Contracts, duly approved by the Securities and Exchange Commission of Pakistan (SECP). These contracts are cash settled with trading units of 10 and 100 barrels and the price quotation is in USD but margins are paid in PKR. The above mentioned contracts have been made available for trading from December 19, 2016.
Crude oil is one of the most significant sources of energy in the world and is therefore critical for global economic growth. In Pakistan, crude oil is a key component of the economy where transportation & power industries are the major consumers. The country is deficient in indigenous production of crude oil, therefore bulk of the requirement is met through large quantity of import every year thus exposing the importers to price volatility risk.
At the launch of the Brent Crude Oil Furfures Contracts, Mr. Ejaz Ali Shah, Managing Director, PMEX said, “We are delighted to add another product in our portfolio. With the introduction of this contract in our energy product mix, market participants can now trade in both Brent & WTI standards of crude oil. We are confident that the new product will provide an excellent opportunity for market participants such as refineries, oil marketing companies, airlines, etc. to hedge their price risk.”
The Exchange is relentlessly striving to broaden its product range by launching a rich mix of products to further enhance its product portfolio. Recently, PMEX launched cash settled futures contracts of Copper and deliverable contracts of Paddy Super Basmati Rice. Additions of new products will not only help the brokers to attract new business but also provide portfolio diversification opportunities to the market participants.
Karachi – Tuesday, October 25, 2016: Pakistan Mercantile Exchange (PMEX), the country’s only commodity futures exchange, launched Copper Futures Contract duly approved by the Securities and Exchange Commission of Pakistan (SECP). PMEX Copper Futures Contract is a cash settled contract. Trading unit of the contract is 1,000 pounds and the price quotation is in USD but margins are paid in PKR. The contract was made available for trading from Wednesday, October 26, 2016.
Copper ranks as the third-most-consumed industrial metal in the world, after iron and aluminum. Presently, in Pakistan, copper is used in industrial manufacturing, cable, electronic and home appliances. Its consumption centers are located in Karachi, Lahore, Gujrat, Gujranwala, Rawalpindi, Islamabad, Peshawar, Kasur and Kotri.
Pakistan is deficient in indigenous production of copper, therefore bulk of the requirement has to be met through import exposing the consumers to price volatility risk. Introduction of Copper Futures Contract will provide hedging opportunities to all such consumers against the price volatility risk in a convenient manner.
At the launch of the Copper Contract, Mr. Ejaz Ali Shah, Managing Director, PMEX said, “The Exchange endeavors to offer products that cater to the needs of all types of market participants such as investors who invest in commodities for long term, traders who work with the aim of earning profit based on their market strategy and hedgers who trade to mitigate their risk, using commodity futures market. Against this backdrop, PMEX is relentlessly striving to broaden its product range by launching a rich mix of products to further enhance its product portfolio. This will not only help the brokers to attract new business but also provide portfolio diversification opportunities to market participants.”
Karachi, October 18, 2016: Pakistan Mercantile Exchange (PMEX), the country’s only multi-commodity exchange, organized a ceremony at its head office in Karachi, to mark the handing over of subsidy by SEDF. Ms. Naheed Memon, Chairperson, Sind Enterprise Development Fund (SEDF)/Sindh Board of Investment, handed over a subsidy cheque for the Red Chilli farmers to Mr. Ejaz Ali Shah, Managing Director, PMEX.
SEDF graciously decided to provide subsidy to farmers on the trading fee and interest rate (on financing against their produce), which would not only encourage the farmers to trade at the technology-driven trading platform of PMEX, but also reduce the transaction cost for the farmers significantly thereby passing the benefits to the grass root level.
Commenting on the occasion, Mr. Ejaz Ali Shah said, “I am grateful to SEDF for reposing confidence in the Red Chilli trading platform of PMEX and consenting to provide subsidy to red chilli growers. PMEX is relentlessly striving to link the Exchange with the real economy by bringing agricultural commodities trade on its platform. Our Red Chilli project in association with value chain participants such as Agility, Pakistan Agricultural Coalition (PAC) and SGS has set a good example of a successful collaborative model which will be replicated for other commodities in the future.”
Moreover, he said, “Once modern warehouses are established and certification along with credit facilities are made available to farmers, they will be able to avoid ‘distress’ selling and will be in a better position to get a fair price for their produce in an efficient manner. PMEX will remain committed towards playing its due role in the development and success of the required eco system.”
Ms. Naheed Memon, Chairperson, SEDF said, “Government of Sindh (GoS) has devised a new strategy to facilitate electronic trade of agricultural produce, this strategy will bring revolutionary changes towards traditional agri-practices in Sindh by minimizing the role of ‘middle-men’ and connect the farmers to local and international markets. Accordingly, SEDF is glad to announce a subsidy on PMEX’s e-trading fee of Rs. 2.5 per KG for 6,000 tons per season for two seasons. Total amount of subsidy under the scheme will be Rs. 30 million. SEDF in consultation with PMEX is devising a mechanism to ensure that subsidy reaches to wider range of growers. SEDF is also further subsidizing the financing cost under the Warehouse Receipt Financing Scheme through ZTBL by absorbing the KIBOR portion. Total amount of subsidy under the scheme will be Rs. 30 million (Rs.15 m per season). We believe that these revolutionary steps will lead to provide premium price to farmers for their quality produce eventually resulting in quality crop inputs over the period of time. Moreover, providing prompt payments to farmers within 72 hours through Warehouse Receipt Financing Scheme will enable them to timely invest in other crops.”
Mr. Akif Saeed, Commissioner, Securities and Exchange Commission of Pakistan along with other Senior Executives from SEDF, World Bank, Sind Agricultural Growth Project, Agility, PAC, SGF, National Foods, Pak Brunei Investment Company and World Bank graced the ceremony.
July 20, 2016: Pakistan Mercantile Exchange Limited (PMEX), the country’s only multi-commodity exchange, and Iran Mercantile Exchange (IME) signed a Memorandum of Understanding (MOU) on June 30, 2016.
The signing ceremony was hosted by IME in Tehran, and Mr. Ejaz Ali Shah, Managing Director, PMEX, and Mr. Hamed Soltaninejad, Managing Director, IME, were the signatories.
The prime reason for PMEX to sign the MOU is to learn from the experience of IME with regards to the physical deliverable products, in specific the agriculture commodities, on the Exchange platform. Going forward, as Pakistan and Iran are trade partners in a lot of commodities, PMEX & IME will be evaluate the possibilities for cross listing of commodities to bring efficiency in terms of both cost and convenience to traders of both markets.
In addition, the MOU would also pave way for both the institutions to work in close coordination for the development and enhancement of derivatives and financial markets in Pakistan and Iran by sharing best practices, market information, industry knowledge and cross training of staff.
On the occasion, Mr. Ejaz Ali Shah, Managing Director, PMEX said, “We are pleased to sign the MoU with IME and look forward to learn from each other’s experiences and explore new ideas including cross listing of commodities”.