GOLD
PMEX Gold Futures Contract Specifications

Trading hours

Hours of Trading in the 1Ounces Gold future Contract shall be Monday to Friday (excluding Exchange specified holidays):

 

Normal Trading Session

05:00 am to 02:00 am PST

 

On the last trading day, i.e. contract expiry, trading will end at 5:00 pm

Unit of Trading

01 Troy ounce & 100 Troy ounce

Trading System

PMEX ETS

Price Quotation

US dollars per troy ounce, up to two decimal places.

Tick size

$0.10 per troy ounce

Tick Value

$0.10 & $10

Contract Months

First three months. Additional contract months would be made available at the discretion of the Exchange depending on the needs of the market

Last Trading Day

Trading terminates at the close of business on the third to last business day of the month preceding the named contract month or on a day specified by the Exchange as a last trading day.

Holiday Convention

In case the last trading falls on an Exchange holiday, previous day will be designated as last trading day.

Settlement Mode

Cash Settlement in Pakistani Rupees.

Daily Settlement Price

Calculated  on  PMEX  specified  methodologies  which  include  Session Consensus Price, Volume Weighted Average Price during last 20 minutes of trading, theoretical futures price or any other methodology notified in advance by the Exchange.

Final Settlement Price

Last traded price of the corresponding month of the physically settled Gold Futures Contract on CME (Commex) at the time of end of trading on Last Trading  Day of the  PMEX  Gold  (1ounce)  Futures  Contract.  If, for any reason, the last traded price at PMEX expiry time is not available, the last available traded price of the corresponding contract on  CME (Commex) will be used as the basis of Final Settlement Price.

Daily Settlement

Daily Settlement of PMEX Gold Futures Contract will result in a cash settlement amount in Rupees. The daily cash settlement amount shall be the day’s mark-to-market profit or loss amount in Rupees based on the Daily Settlement Price of the PMEX Gold (1 Ounce) Futures Contract converted at the USDPKR Exchange rate as determined and notified by the Exchange.

Final Settlement

Final Settlement of PMEX Gold Futures Contract will result in the delivery of a cash settlement amount in Rupees on the Final Settlement Date. The cash settlement amount on the Final Settlement Date shall be the last trading day’s mark-to-market profit or loss amount in Rupees based on the Final Settlement Price of the PMEX Gold (1Ounce) Futures Contract converted at the USDPKR Exchange rate as determined and notified by the Exchange.

Position Limit

200000 contracts per Broker (including propr ietary and all its clients) 10000 contracts per Client of Broker.

Margin Requirement

The amount of margin payable by Brokers in respect of their outstanding contracts shall be determined by the Exchange. Exchange will amend margin requirement whenever necessary or required due to changes in market conditions and risk management principles.

 
All Margins will be collected in Pakistani Rupees.

Initial Margin

Initial Margin will be based on VaR methodology at 99% Conf idence Interval over a 1-day Time Horizon, rounded up to the nearest 0.25% or as specified by the exchange from time to time.

Special Margin

Exchange reserves the right to impose special margins for short duration of time during periods of increased or excessive volatility. Special margins will be computed by increasing the look-ahead period, reducing sample size, or by changing any other parameters used in the VaR methodology.

Spread Discounts

Positions in two offsetting PMEX Gold Futures Contract with different expirations will be eligible for a spread discount.

Spread Contracts

PMEX may open spread contracts.

Further Regulations

This contract shall be subject, where applicable, to the Regulations of the National Commodity Exchange Limited.