Post on 17-Jan-2018
description
transcript
History of Futures Japan Chicago Financial Futures
Started in Japan in early 1700swith Rice Futures Chicago But it
wasn't until the mid-19th century that the true birth of the modern
futures markets and futures contracts began Chicago Board of Trade
(CBOT) was established in 1848 Financial Futures Financial Futures
started in 70s. Commodity Exchanges Around the World
More than 70 around the world Even some poorer countries in Africa
All our neighbours have multiple exchanges The leading exchanges of
the world are: CME,ICE,LME,TOCOM,MCX, Bursa Malaysia, Shanghai
Futures Exchange, Dalian Exchange Started with Physical
Commodities. Financial Futures biggest segment now Only one
model/method of running a commodity futures exchange Tried and
tested method around the world Over 150 years What is A Commodity
Exchange?
In simple terms a commodity exchange is simply a marketplace where
different commodities are traded It is highly regulated Commodities
are traded in standardized contracts of different maturities,
called Futures Contract What is a Commodity Exchange?
Nomenclature Commodity Exchange Commodity Futures Exchange Futures
Exchange Derivatives Exchange Mercantile Exchange At a Futures
Exchange Trade is in the Contract and not Commodity
Standardized PMEX Contract Specifications Commodity: Gold Unit of
Trading: 100 grams Delivery Unit: In lots of 1 kg or multiples
thereof Price Quotation: Rs. Per 10 grams with fineness, Ex-Karachi
SELLER SELLER At a Spot Market Trade is in the Commodity SELLER
SELLER Payment Products Traded Globally
Agriculture Futures Livestock Futures Metals Futures Energy Futures
Weather Futures Currency Futures Interest Rate Futures Equity and
Index Futures Commodity Markets Commodity markets comprise of two
different segments: Spot Market Futures Market Spot Markets The
essence of these markets is ready delivery and acceptance of
delivery of commodities against cash payment. Futures Markets
Futures Contract is an agreement between two parties entered on the
floor of the Exchange to buy or sell a commodity at a certain time
in the future for a certain price. Contracts are highly
standardized Quality, quantity, delivery date & delivery
mechanism are specified Performance of contract is guaranteed by
the Exchange Margin is required Govt. regulates futures market
Requirements of a Futures Contract
There must be a large, active underlying cash market.Existence of
an appropriate demand andsupply of the commodity should be there.
Prices would be significantly volatile. This essence of
unpredictability will generate a demand forhedging. The commodity
should be free from substantial control from Govt. regulations (or
other bodies)imposing restrictions on supply, distribution and
prices of the commodity. the requirement for a successful futures
contract is "fungibility" or interchangeability of theproduct to be
delivered The commodity can be storable either in form of DMAT or
in form of physical. Arbitrage wouldnot be possible without this
condition. Theinformation on the underlying commodity should be
easily available to general public. Interaction of Both
Markets
The two markets interact to provide price signals The links between
the two markets provides price stability The existence of a futures
market stabilizes todays prices Existence of both acts as a check
on the fair-pricing of both markets Convergence of Both Markets
Types of Futures Contracts
There are two kinds of futures contracts: Physically Deliverable
Futures Cash Settled Futures Elements of Futures Exchange?
Exchange is simply a Marketplace Exchange has no role in pricing of
contracts Buyers and sellers determine prices A trade only takes
place if a buyers bid matches sellers offer In futures markets, one
trader's gain is another's loss (Zero Sum Game) In the stock
market, all investors (buyers and sellers) can profit in a
risingmarket and all can lose in a falling market Why do we need a
Commodity Futures Exchange
A futures exchange provides price signals going out in the futures
In absence of price signals one only lives in the present Cannot
plan for the future Policymakers are not able to prepare for the
future The two essentials; Price Discovery Price Risk Management;
Hedging Key Participants Of Futures Market
Hedgers Natural Long Natural Short Speculators /Investors
Arbitragers Key Participants of Futures Market ants of Futures
Market
Hedgers Hedgers are those who make buy or sell in the futures
market solely for the purpose of establishing a known price
level--weeks or months in advance Speculator/Investors Speculators
take a long or short position to make a profit They actually take
the opposite position of hedgers and take the risk thehedgers seek
to avoid They provide the liquidity to the market and can be termed
as facilitator Arbitragers They try to make risk free profits by
taking opposite positions intwo different markets Some Terminology
Initial Margin Maintenance Margin Margin call
Mark to Market Regional Landscape Indian Exchanges, 2012-13
Commodities Volume Vs Equity Cash Volume in India
Total volume of Commodity Futures in India In 2012 INR. 181
Trillion Total volume of Equity Cash Market of India in 2012 BSE
INR6.7 Trillion NSE INR Trillion Total INR Trillion Commodities
Volume is 5 times higher than Equity Cash Market Source:& SEBI
Pakistan Mercantile Exchange Our History Company formed in April
2002
Management appointed in Oct 2003 Became operational in May 2007
with Gold Futures Contract First physical Gold delivery in Aug 2007
Overtook ISE in terms of volumes in May 2009 NBP became shareholder
in Sep 2009 Overtook LSE in Apr Second biggest exchange of Pakistan
in terms of traded volumes Who we are National-level exchange and
the only platform that offers commodity futures trading in Pakistan
317 members In-house state of the art web based trading platform.
21 hours market timing which is an unprecedented feature amongst
regional exchanges. Working towards 23.5 hours market. Segregation
of Broker & Client Funds Accessible Globally / Direct Market
Access State of the art IT infrastructure in place (trading,
clearing & settlement, custody and back office) Regulatory
Frame Work Securities and Exchange Ordinance 1969
Primary Legislation Commodity Exchange & Futures Contract Rules
2005 Rules PMEX Regulations 2007 Regulations Our Shareholding
Geographic Breakdown of Active Brokers
City Name Jan-15 Karachi 80 Lahore 22 Islamabad 12 Others 6 Total
120 PMEX is determined to expand the member network even further
for maximum market penetration Special focus is on Punjab [smaller
cities] Growth Brokers vs. UINs Volumes - 09 to 15 Core Components
of PMEX
IT & Systems Trading Systems (NEXT, CSR, TAMS, BMS, E-Books)
Connectivity and networks Database & Disaster Recovery
Application development Systems assurance and IT security Risk and
Analytics Risk Management Settlement Pricing forMTM Market Maker
BOTs pricing Margin Calculations and Exposure Analysis Research and
Technical Analysis Operations Market Operations Clearing and
Settlement Custodial Services Business and TechnicalSupport
Business System Analysis Membership, Compliance & Regulatory
Affairs Surveillance and Monitoring Discipline and Enforcement
Broker Audit Legal Matters. Issuance and renewal of Membership
Research and Product Development Comprehensive market research
Development of new product along with value addition in listed
ones. Marketing, Business Development & Customer Support
Services Sales & Client Servicing Trainings & Events
Customer Support Services Brand Building Corporate Communication
Product Portfolio Products Contracts Deliverable Cash Settled
Metals
Deliverable Cash Settled Metals Mini Gold Contract (10 grams) Tola
Gold Contract Milli Tola Gold Contract Gold 100 gram Contract Gold
Kilo Contract Gold 50 & 100 Tola Gold 1 oz, 10 oz & 100
ozUS $ denominated Silver 500 oz,100 oz &10 ozUS $ denominated
Energy - Crude Oil 10 & Crude oil 100 barrel US $ denominated
Agricultural IRRI-6 Rice Futures Contract Weekly IRRI-6 Futures
Contract Palm Olein Futures Contract Sugar Futures Contract Wheat
Futures Contract I-Cotton Futures Contract US $ Denominated
Financial KIBOR Futures Contract Brief Contract
Specifications
Gold 100 gm and Gold Kilo Contracts Specification Details Contract
Size 100gm , kilo Price Quotation PKR per 10 gm Tick Size Rs.1
Contract Months 1 to 3 months. Trading Hours Monday: 3 am to 2 am
(23 hours) Tuesday Friday: 5 am to 2 am (21 hours) Settlement Cash
Gold 50 Tola and Gold 100 Tola Contracts Specification Details
Contract Size 50 Tola , 100 Tola Price Quotation PKR per tola Tick
Size Rs.1 Contract Months 1 to 3 months. Trading Hours Monday: 3 am
to 2 am (23 hours) Tuesday Friday: 5 am to 2 am (21 hours)
Settlement Cash Brief Contract Specifications
Gold Milli Tola, One Tola Contracts Specification Details Contract
Size Milli Tola, 1Tola Price Quotation PKR per tola Tick Size Rs.1
Contract Days Monday to Friday weekly Contracts Physical Delivery
Unit 10 Tola Trading Hours Monday: 3 am to 2 am (23 hours) Tuesday
Friday: 5 am to 2 am (21 hours) Settlement Physical deliver in PMEX
vault. Gold 1 Oz, 10 Oz, 100 Oz Contracts Specification Details
Contract Size 1 Oz, 10 Oz, 100 Oz Price Quotation USD per Oz up to
two decimal places Tick Size USD 0.1 Contract Months 1 to 3 months.
Trading Hours Monday: 3 am to 2 am (23 hours) Tuesday Friday: 5 am
to 2 am (21 hours) Margins In PKR Settlement Cash settlement in PKR
Brief Contract Specifications
Silver 10 Oz, 100 Oz, 500 Oz Contracts Specification Details
Contract Size 1 Oz, 100 Oz, 500 Oz Price Quotation USD per Oz up to
3 decimal places Tick Size USD 0.001 Contract Months 1 to 3 months.
Trading Hours Monday: 3 am to 2 am (23 hours) Tuesday Friday: 5 am
to 2 am (21 hours) Margins In PKR Settlement Cash settlement in PKR
Crude Oil 10 barrel and 100 Barrel Contracts Specification Details
Contract Size 10 barrel, 100 barrel Price Quotation USD per barrel
up to two decimal places Tick Size USD 0.01 Contract Months 1 to 3
months. Trading Hours Monday: 3 am to 2 am (23 hours) Tuesday
Friday: 5 am to 2 am (21 hours) Margins In PKR Settlement Cash
settlement in PKR Brief Contract Specifications
International Cotton Contract Specification Details Contract Size
5000 pounds Price Quotation US cents per pound up to two decimal
places Tick Size Cents 0.01 Contract Months March, May, July,
October and December Trading Hours Monday Friday: 7 am to am
Margins In PKR Settlement Cash settlement in PKR Wheat Futures
Contracts Specification Details Contract Size 10 Metric Tons Price
Quotation PKR per 100 Kg Tick Size Rs.1 Contract Months 1 to 3
months. Trading Hours Monday Friday: 10 am to 6 pm Margins In PKR
Settlement Physical Delivery Brief Contract Specifications
Rice Futures Contracts Specification Details Contract Size 25
Metric Tons Price Quotation PKR per 100 Kg Tick Size Rs.1 Contract
Months/ Weeks 1 to 3 months andweekly contract Trading Hours Monday
Friday: 10 am to 5 pm Margins In PKR Settlement Physical Delivery
Sugar Futures Contracts Specification Details Contract Size 25
Metric Tons Price Quotation PKR per Kg Tick Size Rs.1 Contract
Months 1 to 3 months Trading Hours Monday Friday: 10 am to 7 pm
Margins In PKR Settlement Physical Delivery Brief Contract
Specifications
Palm Olien Futures Contracts Specification Details Contract Size 25
Metric Tons Price Quotation PKR per maund Tick Size Rs.1 per maund
Contract Months 1 to 3 months Trading Hours Monday Friday: 10 am to
5 pm Margins In PKR Settlement Physical Delivery PMEX Gold Custody
Services
PMEX provides custody services to all its clients who buy gold from
PMEXand keep their gold inventory in PMEX vaults Gold is kept in
the bank lockers of leading commercial banks. The lockers are
operated by at least two authorized signatories. The custodians of
the keys of lockers are different from the officers whooperate the
bank lockers. The keys are kept in a safe- deposit locker keptin
the Exchange. When bank locker needs to be operated, OPS department
initiates theprocess of obtaining the keys form the custodians of
the keys. The keysthen handed over to the bank lockers operators
with proper entry in theregister. Immediately after the bank locker
operations, keys are returned to theconcerned staff. The periodic
verification of gold inventory is made by internal andexternal
auditors. P/L Calculation for US $ Denominated Contracts
Gold 1 Oz Futures Underlying Commodity: 1 Oz Gold Price Quotation:
USD/ Oz of Gold Price determination is Global, no role of local
organizations A trader buys 1Oz 1170 And 1171 Earns a profit of USD
1 Thisprofit is converted into PKR, of Rs100/USD Profit= Rs.100 The
Buyers account with PMEX will be credited by Rs. 100 andSellers
debited No involvement of physical foreign currency PMEX Milli Tola
Gold (Recent Addition)
Designed for all income groups Savings product Extraordinary retail
potential Mobile Banking Clients Credit Cards Clients
TelecomClients PMEX Product in Pipeline
Third Currency Futures EUR/USD Futures Contract USD/JPYFutures
Contract GBP/USD Futures Contract Energy Brent Crude Oil Metals
Copper Agriculture Weekly & Monthly Palm Oil/Olein Futures
Contracts Mill Specific Sugar Futures Contract Red Chilies PMEX
Third Currency Futures Contracts
Prices are determined in Deep, Liquid, ContinuousInternational
Markets All PMEX participants will be price-followers No
requirement for physical currency movement Will provide an avenue
for ending private, individual FXoutflows for trading Channel
unregulated FX activityto a controlled, regulatedplatform Gold and
EUR/USD are essentially similar
EUR/USD Futures Underlying Commodity: Eur/US Price Quotation:
USD/Euro Price determination is Global, norole of local
organizations A trader buys And Earns a profit of USD Thisprofit is
converted into PKR, say@ of Rs100/USD Profit= Rs.1.11 The Buyers
account with PMEX willbe credited by Rs and Sellersdebited No
involvement of physical foreigncurrency Gold Oz Futures Underlying
Commodity: 1 Oz Gold Price Quotation: USD/ Oz of Gold Price
determination is Global, no role of local organizations A trader
buys 1Oz 1170 And 1171 Earns a profit of USD 1 Thisprofit is
converted into PKR, of Rs100/USD Profit= Rs.100 The Buyers account
with PMEX will be credited by Rs. 100 and Sellers debited No
involvement of physical foreign currency PMEX Commodity Murabaha
(Approval Awaited) 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 IFIs.
Warehousing, Certification & Spot Trading (Concept) Unregulated
Derivatives Trading in Pakistan
Estimated notional traded value of such grey market is US$ 480
billion*. PMEX currently represents only 2.69% of the actual
potential i.e. US$ 13 billion. A big part of the traded value is of
Currency Future Contracts PMEX] Undocumented trades thus loss to
exchequer No legal recourse to market participants Settlement of
this market takes place in US$ leading to: Pressure on PKR as US$
is purchased from the open market Outflow of capital from the
country via Hawala / Hundi * Source : Forex Magnates Magazine +
Informal Market Survey PMEX Risk Management Pillars of Risk
Management @ PMEX
Measure Purpose Method Segregated Account Investor Protection
UIN-based client accounts at Clearinghouse of PMEX Pre-Trade
Verification Ensuring Traders have deposited Margins first Orders
checked against Margin account before acceptance Initial Margin
Ensure Ability to Trade VaR based, dynamically adjusted
Mark-to-Market Extract risk from the market T+0 settlement, twice a
day MTM, P/L, Margin Calls Clearing Deposit Protection against
Worst-case Scenario and breach of Initial Margin Extreme-Value
Theory Position Limits To allow for balanced market growth and
eliminate concentration risk Based on markets demand, need,
capacity and risk Price Limits To stop unjustified extreme moves in
prices Based on underlying risk of commodity volatility Auto
Liquidation To limit the losses incurred by investors 20% of
initial margin Risk Management Gross margining Auto
Liquidation
All open positions are fully margined Initial Margin VaR based
Daily Mark-to-Market Variation Margin Delivery Margins Clearing
Deposits (Worst case margins) Price Limits Auto Liquidation
Segregation of Accounts All margins are held by the Clearinghouse
without any co-mingling of funds Complete Risk Segregation
Client/Client and Broker/Clients Default Protection: Segregation of
Participant Risk
Default Backing Clearing Participants Market Broker Client Prop
Initial Margins Clearing Deposits SGF Default Protection:
Segregation of Participant Risk PMEX Operations Market Operations
Currently running 21hours market (05:00 am to 02:00am) Assignment
of commodities to brokers Definition of Broker positions limits
Pre/Post Trade Risk Management (Margins, Positions, Commodity,
Trader /User Relationship) Contract level margins and market
timings Client account creation and management Business Systems
access management Market-Making setup and application monitoring 24
hours customer support PMEX Clearing House Activities
Trade recording, verification and reporting Daily Mark to market
(twice a day) Margin call generation Collateral management Broker
Exposure management Collection and release of clearing
deposit/margins (Click For Details) Collection of fees and other
charges Maintain Settlement Calendar Delivery management (Final
settlement Pay-insand Pay-outs) SECP Fee computation and reporting
Bank Reconciliations Market Making Accounts management Management
Reporting Market Making Activities
To provide liquidity, Market Maker was Introduced in March 2009
Market makers are the market participants who place two way
quotes(bids and offers simultaneously) on the Exchange in a
particularcommodity contract. Market making arrangements in Gold,
Crude oil and Silver Market making software developed in-house and
integrated with PMEXtrading systems Market Surveillance at
PMEX
Price monitoring on the exchange is done by: Monitoring the traded
volume at different prices Monitoring active participants
Monitoring large position holders Monitoring market prices with
respect to international price movements Compliance & Legal
Compliance with Exchange policies and procedures
Monitoring and Auditing Brokers Reporting and Investigating
Enforcement and Discipline Prevention and Response Surveillance and
Investigation Handling Investor Complaints Broker Education on
Regulatory Changes Broker Activation Process
Registration with SECP Brokers Bank Accounts & Internet Banking
Payment of Clearing Deposit & USB Key Fee USB Key Issuance
Broker Training System and Resource Readiness Payment of Required
Initial Margin Clearing Bank Account Setup
As part of activation process all brokers are required to open the
following PMEX specific accounts with PMEX designated clearing
bank(s): House Account (For all proprietary transactions with PMEX)
Client Group Account (All clients money) PMEX maintains the
following specific purpose bank accounts with the same designated
clearing bank(s): PMEX Clearing Deposit Account; PMEX Initial
Margin Account; PMEX Fee Account; PMEX Final Settlement Account;
PMEX Penalties Account Active PMEX Clearing Banks (MCB, SCB with
internet banking facility) Methods to Access PMEX Business
System
For Broker Staff USB Key (Hardware Cost Rs10,000 and Certificate
Renewal Rs 5,000 annually) For Clients USB Key (Hardware Cost
Rs10,000 and Certificate Renewal Rs 1,000 annually) Digital
Certificate (lost/ renewal Rs 1,000 ) Trader ID / Password (Free)
Trading Website Addresses: ( Save these links in IE favorite list)
https://trade.pmex.com.pk (Web Server 1 Cyber Net)
https://trade.pmex.net.pk/ (Web Server 1 Super Net)
https://trade.pmex.org.pk/ (Web Server 1 Multi Net)
https://trade2.pmex.com.pk/ (Web Server 2 Cyber Net)
https://trade2.pmex.net.pk/(Web Server 2 Super Net)
https://trade2.pmex.org.pk/(Web Server 2 Multi Net) Trading Website
Addresses from DR Site (in case of any eventuality):
https://drtrade.pmex.com.pk https://drtrade2.pmex.com.pk 59 How to
Start Trading on PMEX by a Client
Contact an PMEX Registered Broker Broker Opens Trading Account
Payment of Initial Margin Ask for training, if using Direct
Terminal Enter Orders, Monitor Position, Pay Margins Account
Creation Process @ PMEX
NCCPL PMEX send arequest toNCCP NCCPverified therequest Acc.
openingform filled &signed byclient PMEX System Process UIN
request& assign Trading IDunder assignedPMEX Broker
(AutoGenerated) Client AccountCreation request Client Broker SMS/
Account Confirmation/Rejection Funds Transfer & Segregated
Accounts @ PMEX
Brokers & Clients PMEX Broker House Account Broker House
Account Client GroupAccount Client A Account Client B Account
Broker Client Group A/C Client C Account PMEX Account Client D
Account Trader Account Setup NCCPL Client Pre-Trade Risk
Management
PMEX TAMS Interface Trader Code = Trader Name= CNIC Number =
Commodity Assignment = Commodity LimitLong = Short= Maximum Order
Size= Add New Trader Client A Account Opening Form TRD SelectNCCPL
Approved Trader Client A Broker TRD Client A ABC Block 8 Gold 1,000
1,000 10 Save NCCPL UIN Entry Status Trader Code = TRD Trader Name
= Client A CNIC Number: Status: Approved PMEX TAMS Interface UIN
Entry Trader Code = Trader Name= CNIC Number = Address = PMEX TAMS
Interface Client Pre-Trade Risk Management Allowable Commodities;
Positions limits; Margins exceptions; Max Order Size Trader
suspension; Trader Information Synchronize with Trading System UIN
Approval PMEX Margin Collection Process
Clients give cheques or direct bank deposit receipts to Broker
against initial margin Client A Client B PMEX Margin Collection
Process PMEX Initial & Variation MarginA/c Clearing Bank
Brokers Initial Margin A/c Clients Group Initial Margin Brokers
Initial Margin Client Monitors Daily Ledgers Client A Rs.5,000
Client B Rs.5,000 Broker Brokerage House 100, ,000 = Rs.110,000
House Initial Margin Account Segregated Margin Accounts PMEX
Rs.100,000 Rs.100,000 Rs. 5,000 Segregated Clients Margins Download
Daily Bank Statement Clients A Initial Margins Account = Clients B
Initial Margins Account = Rs. 5,000 Client A Ledger Rs. 5,000
Rs.10,000 Rs.10,000 Client B Ledger Rs. 5,000 Client Group Initial
Margin Allocation interface Unallocated Client Group Margin Balance
= PMEX CSR System Interface PMEX CSR System NIL House Margin
Account Clients B Initial Margins = Clients A Initial Margins =
Rs.5,000 Rs.5,000 Unallocated Client Group Margin Rs.10,000 NIL
Client A Ledger 5,000 Client B Ledger Allocated Margin Release
Process
PMEX Initial & Variation MarginA/c Clearing Bank Brokers Margin
Accounts Clients Group Margin Collection Brokers Margin Client A
Rs.3,000 Clientsends a release request to Broker Broker Brokerage
House (Before Release) House Initial Margin Account Segregated
Margin Accounts Rs. 5,000 Clients A Initial Margins = Clients B
Initial Margins = Rs.100,000 Rs.10,000 Client Segregated Margins
Daily Broker Margin Release Status Report Broker PMEX CSR System
Interface Rs. 110,000 Rs. 107,000 Download a Daily Release Report
From PMEX PMEX Client Name Release Status Amount Client A Ledger
Accepted Rs.3,000 Total CG Release C&S Department transfers
approved release fund Release Request Update Client Ledger House
Initial Margin Account (After Release) Segregated Margin Accounts
Rs. 2,000 Rs. 5,000 Clients A Initial Margins = Clients B Initial
Margins = Rs.100,000 Rs.7,000 Client Segregated Margins Margin
Release Request Interface Clients A Initial Margins = PMEX CSR
System PMEX CSR System Client MTM Session 1 process Client MTM
Session 1 process Submit Broker A Margin Rs. 100,000 Client A
Ledger Rs.5,000 Client B Ledger Total Margin with PMEX Rs.110,000
Broker A Margin Rs. 100,000 Client A Ledger Rs.2,000 Client B
Ledger Rs.5,000 Total Margin with PMEX Rs.107,000 MTM Means = Mark
to Market Process, currently runs twice a day and withdrawals from
clients account arevalidated in MTM session before start of New
trading session i.e. before 10:00 am PMEX Trading System PMEX
Trading Platform PMEX Broker Assigned Deal
Trade Capture Pre-Trade Risk Management Mark to Market Position
Update Risk Mgmt Market Monitoring Trader A Systems Update Banking
& Settlement Trader B PMEX Trading System PMEX provides
following foursystems to its brokers for the smooth and efficient
trading at PMEX. Next Trading Terminal Trader Account Management
System (TAMS) Clearing, Settlement & Reporting System(CSR)
eBooks Integration with third party systems (i.e. MT5) through FIX
PMEX provides hands on training to the Brokers and their staff on
the Demo system of the Exchange so that they could use these
systems efficiently. PMEX Business Systems Features
NEXT Web Based Trading Terminal: Direct market Access to all
participants (Broker & Clients ) Secure Login Digitally singed
Pre- Trade checks Order types Limit, market, Stop loss Limit /
market News/Twitter feed connectivity provision Trader Risk Watch
(Net Liquidity, Buying power and Real time PL) Type of Orders
Market Order: An order that an investor makes to buy or sell a
contractimmediately at the best available current price. Limit
Order: An order placed to buy or sell a contract at a specified
priceor better. Limit orders also allow an investor to limit the
length of time anorder can be outstanding before being canceled.
Protective Stop Order: An order designed to protect the investor
againstlosses beyond a set limit by means of a stop-loss order.
Trailing Stop Order: A stop order that can be set at a defined
percentageaway from a security's current market price. A trailing
stop is designed toprotect gains by enabling a trade to remain open
and continue to profit aslong as the price is moving in the right
direction, but closing the trade ifthe price changes direction by a
specified percentage or amount ofdollars. Good Till Cancel Order:
The order remain in the market till it is cancelled Trader Account
Management System - TAMS
Trader Account Management System is used to perform the following
functions: UIN (Unique Identification Number) Management Trader
Management User Management UIN Entry Unfreeze UIN Freeze UIN UIN
Information Assigning specific commodities Assigning commodity
limits Increase in margins Suspending a trader Setting Trader
Threshold Add User Edit Pending Edit User Assign Traders Activate
User Suspend User View User Log Re-Issue USB Key Pending Re-Issue
USB Requests Add KATS Id PMEX Business Systems Trader Account
management System TAMS
UIN Management Trader UIN creations Trader Management Traders
Commodity and positions limits assignments Traders contract margin
definitions; Traders Rights Management (Active / Suspend trader)
User Management Manage user accessing PMEX Business Systems
Assignment of traders to Specified traders (clients) Clearing,
Settlement & Reporting System - CSR
Clearing, Settlement, Reporting (CSR) System is used to perform the
following functions: Daily Operations Setup Market Information
Operation Reports Surveillance Report Funds Management (Funds
allocation, Funds Withdrawal, Funds Transfer and Approval,
Securities Release) Commission Management (Commission Upload and
Download) Gold Management (Gold Withdrawal, Delivery, Receipt) Bank
Account Management (Bank Account Numbers, Primary Bank Accounts)
Key Personnel Setup Session Management (Session Market Price,
Session History, Spread Market Price) Contract Reports Margins
Reports Commodity Reports MGold Market Prices MGold Session Prices
MGold Contracts General Ledger Trader Funds MiniGold Receipts
Trader Vault Transactions Settlement Call MGold Trader Margin MGold
Daily Settlement MGold Withdrawal Request Status Key Personnel
Details Broker Exposure Client Wise Trader Balance Trade Details
Position Summery Account Statement Daily Statement Client Margin
Call Ticket Trade Details MGold Trade Vault Positions MGold
Positions Order Details Account Statement History Daily Statement
History PMEX Business Systems Clearing and Reporting System
CSR
Futures commodity setup allow to define futures commodity contract
specifications Commodity futures contract setup Contract margins
setup of different types (initial margin, delivery margin, spot
margin etc) at Commodity level, Contract level with option to
define separately for buy (long) or Sell (Short) Contract wise
Exchange Trading fees setup Setup Chart of accounts to open
financial ledger CSR Security Module, Create customize role and
assign to authorized users of the Exchange Collateral Management
Setup includes eligible pledge securities definition with
applicable hair cuts that uses in MTM process PMEX Business Systems
Clearing and Reporting System CSR
Exchange can assign clearing limits (exposure limits) according to
member risk appetite Setup and approve member multiple bank account
setup for settlement of transactions Exchange can setup, calculate
and distribute profit on clients margin balance Contract wise
Market timings setup for pre-open, open, pre-close, close; market
timings covers trading session falls in two calendar days that
helps to cover trading session of different time zone Setup
Settlement calendar. eBooks PMEX eBooks offers a tailored solution
that encompasses all the requirements including accounting at
company and branch levels with additional features such as user
role definition and access control, commodity/client specific
commissions, general ledger and synchronization with PMEX CSR
System. Thank You .