PSX takes stock at PMEX

Dr Shamshad Akhter, chairperson Pakistan Stock Exchange, recently visited the Pakistan Mercantile Exchange (PMEX). Ejaz Ali Shah, managing director at PMEX, apprised Dr Akther about the role being played by PMEX in developing a vibrant and robust futures market in Pakistan.

Shah also announced that PMEX has gone from strength to strength on the back of technological advancements, diversified product suite, expanded footprint and enhanced customer services, building trust amongst the market participants and encouraging them to actively trade in futures.

As a result, the average daily trading volume has surged to Rs 11.78 billion in 2021 from Rs 3.70 billion in 2015, resulting in trading volumes during the last five years being tripled.

He also briefed about the direct fund model (DFM), which directly collects funds from customers and transfers funds to their bank accounts without the involvement of broker(s). Shah highlighted operations of black-market operators in Pakistan that is a reason for concern for the country’s foreign exchange reserves and sought the help of Dr Akhter in cracking down on the black-market operators.

Next, Shah explained the global commodity trading platform (GCTP), a wholly-owned subsidiary of PMEX, which will offer an e-commerce platform to allow Pakistani commodity producers and exporters to sell agri and non-agri commodities to global buyers with a click of a few buttons.

At present, GCTP is ready to be launched and pending approval from State Bank of Pakistan (SBP) with respect to the timing of conversion of foreign currency, which is expected soon, the PMEX MD revealed.