PMEX refutes LSE MD’s statements
Clarifies misconceptions over PMEX’s performance.
KARACHI:
The Pakistan Mercantile Exchange (PMEX) objects to statements made by the Managing Director of the Lahore Stock Exchange (LSE), as reported in the business pages of The Express Tribune on Saturday, September 8, the PMEX spokesperson has said in a rebuttal.
The spokesperson claimed that a number of misleading assertions were made by Aftab Ahmad Chaudhry. “A basic misconception continues amongst high-level capital market executives regarding agricultural market infrastructures, as they are unable to distinguish between spot and futures market roles. The fact is that the PMEX is and has been a futures exchange. PMEX is neither in competition with, nor is an alternative to spot markets,” the spokesperson said.
“Commodities where underlying spot markets are efficient and well-established are also successful in futures markets before others. This is the reason for the current success of gold, silver and crude oil on PMEX, as these commodities have deep and liquid global markets,” the spokesperson continued. “Success in domestic wheat, rice and sugar will come at a slower pace as the underlying spot markets in the country are riddled with numerous inefficiencies and bottlenecks. The current PMEX mandate does not include reform of spot markets. To assert that the current lack of volumes in domestic agriculture commodities on PMEX can be radically altered by handing control to stock exchanges is misleading.”
Published in The Express Tribune, September 12th, 2012.
The Pakistan Mercantile Exchange (PMEX) objects to statements made by the Managing Director of the Lahore Stock Exchange (LSE), as reported in the business pages of The Express Tribune on Saturday, September 8, the PMEX spokesperson has said in a rebuttal.
The spokesperson claimed that a number of misleading assertions were made by Aftab Ahmad Chaudhry. “A basic misconception continues amongst high-level capital market executives regarding agricultural market infrastructures, as they are unable to distinguish between spot and futures market roles. The fact is that the PMEX is and has been a futures exchange. PMEX is neither in competition with, nor is an alternative to spot markets,” the spokesperson said.
“Commodities where underlying spot markets are efficient and well-established are also successful in futures markets before others. This is the reason for the current success of gold, silver and crude oil on PMEX, as these commodities have deep and liquid global markets,” the spokesperson continued. “Success in domestic wheat, rice and sugar will come at a slower pace as the underlying spot markets in the country are riddled with numerous inefficiencies and bottlenecks. The current PMEX mandate does not include reform of spot markets. To assert that the current lack of volumes in domestic agriculture commodities on PMEX can be radically altered by handing control to stock exchanges is misleading.”
Published in The Express Tribune, September 12th, 2012.