NCEL Executes Crude Oil Futures Contracts
Crude Oil and Silver Futures contracts were successfully executed at National Commodity Exchange Limited (NCEL), Pakistan’s only regulated and technologically advanced platform. The newly introduced commodities are attracting volumes with Crude Oil 100 barrel futures contract amounting to US $ 615,952 (PKR 52 million) and Silver 500 ounce futures contract observing trades worth US $ 72,911 (PKR 6 Million) during the last week.
Mr. Samir Ahmed, Managing Director NCEL said “These international, US Dollar-denominated contracts now allow direct linkages to the international markets eliminating the exchange rate risk and allowing investors a pure play on commodity price itself. The contracts will add further depth and liquidity to the NCEL platform and create opportunities for new trading and advanced hedging strategies. The listing of these contracts marks an important milestone in this phase of growth for NCEL”.
NCEL is a gateway to an electronically transacted marketplace, with trading, central party clearing and settlement facility; where customers continue to rely on liquidity, price transparency and ensured settlement. The exchange is a reliable and secure platform boasting increased retail and institutional investor demand for over the counter trades and mitigating the risks of counterparty default. This provides effective hedging tools for trade, industry and other market participants who may be exposed to energy and precious metal price risks.
According to Ms. Raheela Khan, Senior Manager at NCEL, the exchange is currently providing trade facilitates in Gold, Silver, Crude Oil, IRRI-6 Rice, Palm Oil and Interest Rate Futures. “During 2009, total rupee traded volume touched 28,029,469,905 with a total of 86,883 contracts reflecting a year- over- year growth of 4485%” informed Raheela. She further pointed, Dec 09 was an exceptional month with a 5.3 billion rupees monthly volume, setting a daily average traded value of 300million rupees and marked the highest ever day trade volume record of 1.29 billion rupee. NCEL volume growth has been phenomenal in 2009 breaching ISE and nearing LSE volumes, however, volumes were mostly concentrated in gold.
In 2010, these volumes are to grow substantially with growing institutional investors and several agricultural, metals, and financial futures contracts to be listed. These new electronically-traded contracts are offered continuously for 20 hours a day from 10am to 6am, five days a week. NCEL is Pakistan’s first and only demutualised exchange with a 100% institutional shareholding. It has 290 members spread all over Pakistan.
Fore more details visit: www.ncel.com.pk or call 111-623-623
ABOUT: National Commodity Exchange Limited (NCEL) is the first technology driven, de-mutualized, on-line commodity futures exchange in Pakistan. NCEL’s shareholders are Karachi Stock Exchange, Lahore Stock Exchange, Islamabad Stock Exchange, Pak Kuwait Investment Company Limited, Zarai Taraqiati Bank Ltd and National Bank of Pakistan (NBP) and it is regulated by Securities and Exchange Commission of Pakistan. NCEL is committed to providing a world-class commodity futures trading platform for market participants to trade in a wide spectrum of commodity derivatives, driven by best global practices, professionalism and transparency. For more information: www.ncel.com.pk
