The development of Pakistan Real-time Interbank Settlement Mechanism (Prism) system was started as a response to the growing awareness of the need for sound risk management in settlement of high-value funds transfers to Pakistan.
According to the Economic Survey (2010-11) issued here on Thursday, the Prism operated by the State Bank of Pakistan offers a powerful mechanism for limiting settlement and systemic risks in the interbank settlement process by providing real time settlement on gross basis. In addition, the Prism also contributes to the reduction of settlement risk in security transactions by providing basis for Delivery Versus Payment (DVP) mechanism.
The survey said that Pakistan Mercantile Exchange Limited (PMEX) formerly known as the National Commodity Exchange Limited (NCEL) is Pakistan's first demutualized online commodity exchange. It was established in April 2002 and commenced operations in May 2007. The PMEX provides a regulated platform for trading of futures contract in commodities and currencies. The product portfolio of PMEX has been designed to cater for the hedging and speculative needs of various stakeholders/ investor groups. The futures contracts presently available at the exchange include varying sizes of gold and silver contracts, rice, palm oil, crude oil, sugar, and cotton and interest rate contracts.
The trading volumes at PMEX showed an exponential rise during the period under review. The total traded value of contracts climbed up to Rs 380.9 billion in 2010-11 compared to Rs 54.7 billion in 2009-10 with the number of contracts traded rising to 1.2 million from 0.3 million traded in the 2009-10 implying 556 percent in traded value and 315 percent in the number of contracts traded during the year, it added.
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