PMEX Explores Cross-Listing Futures Contracts with IME

 

The world has transitioned into interconnected global village, where countries now complement each other, rather than entering into competition. As part of its global growth strategy, PMEX is committed to developing strategic ties with international exchanges to explore new business opportunities and adopting best practices.  Last year, PMEX entered into a Memorandum of Understanding (MoU) with Iran Mercantile Exchange (IME) to share information, expertise, cross-list products and introduce staff training programmes.

Pakistan and Iran, having common border, enjoy longstanding cordial relations. Keeping in view the excellent global trade opportunities, PMEX and IME are working closely for cross-listing of commodities, a phenomena which is gaining momentum all around the world.

Going one step further, IME has shown keen interest in listing futures contract of Pakistani rice and propose PMEX to list Iranian bitumen. Both the commodities enjoy extensive global demand and it is expected that cross listing of these commodities using futures derivatives will spread out the risk by offering exposure in more than one markets while hedging price to mitigate sudden market price fluctuations.

Moreover, this will help the local producers of both the countries to offer their products to much larger community of traders and investors.  The added advantage will be that buyers will get certified quality as well as efficient warehousing and logistics facilities.

PMEX is working closely with IME to develop a working model and sort out regulatory, cost & liabilities, logistics, warehousing modalities. This initiative will pave the way for PMEX to replicate this model with other leading commodity exchanges of the world.

PMEX is confident that cross-listing products will go a long way in achieving its vision of supporting economic growth in the country by making Pakistani financial products available globally and meeting the needs of its investor community for global products.

Posted on March 27, 2017 in PMEX

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