PAKISTAN MERCANTILE

EXCHANGE
MEMBERS:
ADIL FARHAN
NARINDER KUMAR
NAUMAN ZAFAR

INTRODUCTION
largest and first future commodity exchange in the country
founded in 2005 and started its full operations from 2007
electronic web based trading with easy access
has institutional shareholder including NBP, PSEL and other
licensed and regulated by SECP.
only exchange where gold, crude oil, agriculture, silver, and financial
futures are traded

HOW PMEX WORKS

an account needs to be opened with a broker
Funds then needs to be submitted to the broker and then orders shall
be placed.
currently more than 300 members available
It offers both the deliverable and cash settled contracts.

DIFFERENCE BETWEEN CASH SETTLED AND

DELIVERABLE CONTRACT
The contracts have been divided into either cash settled or deliverable.
In Cash settled contracts prices are quoted in different currencies,
eventually settled in PKR
In deliverable contacts, daily settlement prices are quoted in PKR.

CASH SETTLED GOLD CONTRACT

Cash settled contracts is PMEX USD Gold (Milli Ounces) Futures
Contract.
Its trading unit is Milli ounces.
It is available for February, April, June, August, October and December .
While term is just one month.
Daily settlement prices are quoted in USD
Daily marking to market is done on PKR at an exchange rate notified by
SBP.

DELIVERABLE GOLD CONTRACT

Deliverable contracts is PMEX One Tola Gold Futures Contract.
The daily price quotation is per PKR per Tola.
One contract can be for the delivery for multiples of 10 Tolas.
The deliverable gold must have at least 999.0 fineness.
The price limit is +/-5% of the previous day.
The initial margin will be 25% while maintenance margin be 15%.
The sellers must have an equivalent credit of gold in the margin account maintained
with PMEX.
They are not allowed to short sell.

THANKYOU
ANY QUESTIONS?