enhancing maximum liquidity and contributing to the depth and stability of market by enabling market...
TRANSCRIPT
• Enhancing maximum liquidity and contributing to the depth and
stability of market by enabling market making.
• Enabling price discovery to support and create the market for local
domestic products in the long run with the purpose of physical
delivery.
• State of the art, Cutting edge trading console with customizable
features and more professional state-of-art software in line with the
proposed regulatory parameters.
• Competitive move of an exchange to counteract mushrooming of new
exchange openings.
• Internationally practiced exchange’s clearing and settlement modality
with the complete order matching system leading to more transparent
market mechanism.
Objective & Competitive EdgePRESENTATION
Market Structure
MEX CM/MM Broker Client
MM
PRESENTATION
• A commodity exchange, abiding by the rules and bye-laws and also by
the law of land. Offering huge opportunity and enabling Nepalese
investors to diversify their investment portfolio with the help of its
members, banking partners and software vendors.
• Provides brand new platform and have overall supervision,
observation, super surveillance on the market and its participants.
Exchange (EX)PRESENTATION
• Registered institution with financial requirement as prescribed by
exchange.
• Dual Role of Clearing & Settlement(C&S) and Market Making as a
Market Maker(MM)
• Clearing &Settlement Role
Can introduce market maker, brokers, clients, and responsible for
administrative works (provide margin/ commission leverage,
creating client profile, Broker and Sub-broker creation, margin
call, fund transfer, offline support etc)
• Market Making Role*
Provide frequent bid and ask quotes simultaneously with quantity
within the parameters set by Exchange
Clearing Member(CM)PRESENTATION
Market Maker (MM)
• Registered institution or an individual
• Plays only role of Market Making*
• Not authorized to introduce broker & clients
Broker
• Plays a role to introduce sub-brokers /clients or can trade on their own
account.
• Providing advisory services to clients, training and customer support
etc.
PRESENTATION
• Exchange will provide the External Price Link to all the MMs as a
reference price.
• MMs can choose the Spread and can show their intentions of Buy and
Sell quantity for different contracts; however maximum permitted
spread will be decided by the Exchange itself.
• MMs must show their intentions of both buy and sell quotes, which
will be displayed to all the clients and clearing and settlement will be
done through Automated Trading System (ATS).
Market MechanismPRESENTATION
• Intentions of the MMs will represent the Market Depth.
• Quotes of MMs will be sorted as per their defined spread and order
will be matched on Price-Time priority.
• Clients and MMs too can close their any open position at the available
best Bid and Ask.
-If Market Maker close their open position, further profit and loss
of the respective client will be transferred to the next Market
Marker available on best Bid and Ask, with no effect on the clients
open position.
Market MechanismPRESENTATION
