PMEX stands for Pakistan Mercantile Exchange. PMEX is the first commodity exchange in Pakistan which was granted permission by Security and Exchange Commission of Pakistan (SECP) to commence its operations on May 16th 2002. PMEX was established as a commodity exchange company on April 20th 2002. Pakistan Mercantile Exchange Limited as was formerly known as the National Commodity Exchange Limited NCEL. This is to better reflect its broad mandate and scope of activity to trade all types of futures contracts. The vision of PMEX is to bring international markets to a domestic platform – gold, silver, crude oil etc. – and to provide our domestic markets a gateway to international cotton, rice, wheat and sugar markets. The company is known as the most trusted alternative in order to invest in risk hedging financial derivative securities. It has its head office in Karachi and also has its registration for the particular commodity exchange.
Pakistan Mercantile Exchange Limited is a registered trademark of Securities Exchange Commission of Pakistan (SECP). PMEX under these circumstances comes out to be the first one to deal as technology-driven, de-mutualized, on-line commodity futures exchange company in Pakistan. PMEX -‘s shareholders are National Bank of Pakistan, Karachi Stock Exchange, Lahore Stock Exchange, Islamabad Stock Exchange, Pak Kuwait Investment Company (Pvt.) Limited, and Zarai Taraqiati Bank Ltd.
Pakistan Mercantile Exchange has kept its membership for all those who are interested to be the part of the company and so is open for everyone. The current number of its registered members is more than 300. This number of membership is growing by leaps and bounds. Members can watch live rates after opening an account with PMEX. PIMEX provides its members with User ID and Password for live rates and trading. Members can also buy/sell gold, silver and crude oil through your terminal. They can see their invested amount in positions section, also profit and loss history and current positions. A complete history of their trading is also available in reports section. The members include brokerage houses, individuals and industry specialists ranging from traders, exporters to commodity specialists.
PIMEX was first founded in 2002 but it signed its first product of Gold Futures Contract in May 2007. The first product it delivered was the first gold physical delivery in August 2007. It was then followed by setting up contracts for the additional products, that is – IRRI -6 rice in March 2008 Palm Olien futures in June 2008 and KIBOR futures in Jan 2009. Crude Oil and Silver contracts were listed in Nov 2009. International cotton was listed in 2013.
The Exchange increased its working hours to 21 hours. This is to keep pace with global marketThe purpose of PMEX is to provide a platform for retail investors, corporations, farmers, millers and hedgers to make use of price discovery and price risk management (simply called hedging) according to their needs.
In 2012, the volume traded at PMEX was Rs1.16 trillion. This represents a growth of almost 45 percent as compared to Rs802 billion traded in 2011.
The most popular commodity in 2012 was PIMEX’s internationally traded gold contract, including the popular mini gold and tola gold physically deliverable contracts as well. The total value of gold traded on the exchange was Rs716 billion in 2012 and Rs580 billion in 2011.
PMEX envisions more commodities futures products in order to tap a larger customer base. Some of the products that are in the pipeline are international and domestic cotton futures, cottonseed oilcake futures, currency futures like USD-Japanese yen, USD-euro and USD-UK pounds, treasury bills futures, copper and steel futures and refined petroleum product futures. PMEX also intends to introduce shariah-compliant products.
The opening of new offices in order to have presence in other cities across the country is also under consideration. PIMEX is working closely with asset management companies to launch commodity-based open-ended funds targeting the retail and corporate audiences.