KARACHI: Chairperson Pakistan Stock Exchange Dr Shamshad Akhter visited Pakistan Mercantile Exchange (PMEX). Ejaz Ali Shah, Managing Director PMEX, welcomed the guest and thanked her for sparing time and showing keen interest in the affairs and mission of the Exchange.
Shah apprised Dr Shamshad Akther about the role being played by PMEX in developing a vibrant and robust futures market in Pakistan. While speaking about the progress of the Exchange, Shah informed that PMEX has gone from strength to strength on the back of technological advancements, diversified product suite, expanded footprint and enhanced customer services.
These steps have built trust amongst the market participants and encouraged 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 a tripling of trading volumes during the last 5 years.
He also briefed about the Direct Fund Model (DFM). Under DFM, the Exchange directly collects funds from customers as well as transfers funds to their bank accounts without the involvement of broker(s). The DFM empowers the customers to get complete control of their funds at all times and restricts the role of the brokers primarily to servicing the existing customers and soliciting new businesses.
Underscoring the challenges faced by PMEX, Shah highlighted operations of black-market operators in Pakistan. These black-market operators not only eat up PMEX business but also cause heavy drainage of the country’s foreign exchange reserves. Shah sought the help of Dr Shamshad in cracking down on these black-market operators.
Dr Shamshad Akhter thanked Shah for the detailed briefing on PMEX and its upcoming initiatives. She appreciated the efforts of the Exchange in streamlining investors’ funds through DFM which will help in building investors’ confidence in trading futures at PMEX. She acknowledged the need of cracking down operations of the black-market operators and assured her fullest support in eradicating this menace. Furthermore, she appreciated GCTP, which will act as a catalyst in boosting the exports of Pakistan. She also assured the best support to PMEX in its future endeavours.
Copyright Business Recorder, 2021