PMEX refutes LSE MD’s statements
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.
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silly tactics have been used to defame PMEX, Forming a slighlty similar company doesn't give one company license to defame another. Assertions made are incorrect Interestingly LSE enjoys ownership rights of PMEX with around 12% shareholding. This is the worst example to comment at open forums on the performance about the company under investment, instead of recognizing the success and efforts on a record breaking performance as PMEX recorded monthly trading volumes at an all-time high for the month of August 2012. A total of 325,000 contracts, worth Rs129 billion, were traded on the exchange during the month.