Transcript PMEX Commodity Murabaha An Efficient Liquidity Management

Who we are
National institution and the only platform that offers commodity futures
trading in Pakistan
Broker network of 329 members
In-house developed web based trading platform
21 hours market timing - working towards 23.5 hours market
Aggressively focusing on the market development and client awareness
programs along with increasing the product offerings to the investors
End to end solution - trading, clearing & settlement, custody and back
office
Our Shareholding
National Bank of
Pakistan
33%
Pak Kuwait Inv.
Co. Ltd.
3%
Lahore Stock Exch.
Ltd.
8%
Zarai Taraqiati
Bank Ltd.
3%
Islamabad Stock
Exch. Ltd.
20%
Karachi Stock Exch.
Ltd.
33%
Regulatory Frame Work
Primary Legislation
Securities and
Exchange
Ordinance 1969
Rules
Commodity
Exchange &
Futures Contract
Rules 2005
Regulations
PMEX
Regulations
2007
USPs
Only Regulated Futures Exchange in the Country
Guaranteed Settlement
Segregation of Funds
Accessible Globally / Direct Market Access
21 hour Operations
Snapshot of PMEX
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IT & Systems
Trading Systems
Connectivity and networks
Database & Disaster Recovery
Application development
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Market Operations
Clearing and Settlement
Margin Management
On-line Banking
Delivery Management
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Business Development
Product Development
Research
Marketing
Training
Customer Services
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Analytics
Risk Management
Margin Calculations
Exposure Analysis
Settlement Pricing for MTM
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Compliance & Regulatory Affairs
Regulatory Coordination
Surveillance and Monitoring
Discipline and Enforcement
Broker Audit
Legal
Membership
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Issuance
Transfers
Broker Registration
Renewals
Geographic Breakdown of Active Brokers
City Name
2015
Karachi
80
Lahore
22
Islamabad
12
Others
6
Total
120
Growth – Broker’s vs. UIN’s
Volumes - ‘10 to ‘15
Our Offered Products
Products
Contracts
Deliverable
Metals
Mini Gold Contract (10 grams)
Tola Gold Contract
Milli Tola Gold Contract
Energy
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Agricultural
IRRI-6 Rice Futures Contract
Weekly IRRI-6 Futures Contract
Palm Olein Futures Contract
Sugar Futures Contract
Wheat Futures Contract
Red Chilli
Financial
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Cash Settled
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
Gold Milli Ounces Contracts in USD, EUR , GBP and JPY
Crude Oil 10 & Crude oil 100 barrel US $ denominated
I-Cotton Futures Contract US $ Denominated
KIBOR Futures Contract
Our Offered Products
Products in Pipeline
Metal:
Copper
Energy:
Brent Crude Oil
Deliverable HSD & Palm Oil
Financial:
International Currency Pairs
Murabaha
US Equity Indices
Pakistan is an Agri- Economy
Pakistan’s GDP is USD 250 billion
Agriculture contributes around 22% in GDP and 45% in employment
Major crops are: Cotton, Wheat, Sugarcane, Rice and Maize
For Cotton Pakistan is amongst top five and for Wheat, Sugarcane and Rice
Pakistan is amongst top ten countries.
Production of Important Crops (000 tons)
Cotton( bales)
Sugarcane
Rice
Maize
Wheat
13,026
62,472
5,541
4,631
24,231
PMEX aims to bring futures contracts of all the above commodities on its
trading platform
PMEX Milli Tola Gold (Recent Addition)
Designed for all income groups
Savings product
Extraordinary retail potential
Mobile Banking Clients
Credit Cards Clients
Telecom Clients
PMEX Commodity Murabaha
An Efficient Liquidity Management Tool for the Islamic Finance Industry
PMEX has developed a Murabaha product to facilitate the
Islamic Finance Industry (IFI)
International commodity exchanges such as London Metal
Exchange, Bursa Malaysia & Jakarta Futures Exchange are
also enabling Murabaha transactions and are acting as hubs
for Islamic Banking liquidity management
PMEX regulated platform will serve as an industry standard,
efficient liquidity management solution
We envision that this Murabaha product will eventually serve as an industry benchmark and
the first investment choice for the IFI’s.
Warehousing, Certification & Spot Trading
(Concept)
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