History of Futures Japan Chicago Financial Futures

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History of Futures Japan Chicago Financial Futures Started in Japan in early 1700s with 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.

Transcript of History of Futures Japan Chicago Financial Futures

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 .