Mercantile Exchange Nepal Limited
Encyclopedia
Mercantile Exchange Nepal Limited or MEX is the largest online commodity futures exchange in Nepal. It is located at Alliance Tower, Fourth Floor, Charkhal,Dillibazar, Kathmandu, Nepal
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MEX trades futures in various commodities such as cash crops, food grains, vegetables, spices, oil seeds, metals & bullion. It commenced its operations on 5 January, 2009.
MEX is a regulated company subject to various laws of Nepal.
All trades are done through the Exchange Members (Clearing Members) and their affiliates i.e. Non-Clearing Members. Only the Exchange Members can clear with the Exchange and the non-clearing members act as intermediates between the members and clients.
MEX has currently 72 members. MEX is planning to introduce trading in local commodity in near future.
Oil Seeds,
Vegetable Oils and Fat,
Fiber Crops,
Other Products,
Energy,
Precious Metals and
Industrial Metals
MEX commenced futures trading in numbers of commodities on a national scale and the basket of commodities has grown substantially since then to include cash crops, food grains, vegetables, spices, oil seeds, metals & bullions among others.
MEX conducts its futures markets through its automated trading accessibility to the trader. MEX Futures provides global futures markets, as well as clearing services through MEX various affiliated clearing members. MEX’s electronic trading platform
brings market access and transparency to participants globally.
The Chief Executive Officer who is a full time employee is an expert in the field with 10 years experience in futures market operations. Besides the Board, CEO is assisted by various committees like Membership Services Committee, Compliance Committee, Clearing and Settlement Committee and Disciplinary Committee, entrusted with handling independent portfolios.
Management of Exchange is liable to set a chain to regulate its affiliates as Member or Non-Member client. Exchange has to make safeguard of amount of participants. Trading management, Member management, formation of market safeguard are essentials.
Nepal
Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...
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MEX trades futures in various commodities such as cash crops, food grains, vegetables, spices, oil seeds, metals & bullion. It commenced its operations on 5 January, 2009.
MEX is a regulated company subject to various laws of Nepal.
Trading Method
MEX Nepal is a fully automated electronic exchange, where there is no physical trading floor. The Exchange is controlled through a centralized platform which is connected with different ‘client’ front-ends called MEXNTrader. All trades are done through MEXNTrader.All trades are done through the Exchange Members (Clearing Members) and their affiliates i.e. Non-Clearing Members. Only the Exchange Members can clear with the Exchange and the non-clearing members act as intermediates between the members and clients.
MEX has currently 72 members. MEX is planning to introduce trading in local commodity in near future.
Technology
MEX’s electronic platform is the gateway to an open marketplace—one in which each participant has access to real-time price discovery and trading functionality. It is the first marketplace to offer electronic access to futures market, allowing participants across the globe to optimize trading operations and strategies through seamless execution on a single platform.Traded Commodities
Food Grains and Allied Products,Oil Seeds,
Vegetable Oils and Fat,
Fiber Crops,
Other Products,
Energy,
Precious Metals and
Industrial Metals
Trading Hours
MEX initiated trading with 11 products and currently it has made available 21 products for trading. It is the first exchange to offer 24 hours trading in Nepal.Composite trading commences from 10.00 am to 18.00 pm on weekdays. And Electronic trading will be round the clock from Monday 4.45 to Saturday 1.30 AM. The exchange is closed on Sundays and on other national holidays which is notified on the exchange website.Growth
MEX Nepal is the biggest and most liquid commodity exchange in Nepal and is a zero debt company. Founded on August 14 2007, currently it has 16 commodity derivative products and 5 mini contracts listed and traded every day.MEX commenced futures trading in numbers of commodities on a national scale and the basket of commodities has grown substantially since then to include cash crops, food grains, vegetables, spices, oil seeds, metals & bullions among others.
MEX conducts its futures markets through its automated trading accessibility to the trader. MEX Futures provides global futures markets, as well as clearing services through MEX various affiliated clearing members. MEX’s electronic trading platform
Electronic trading platform
In finance, an Electronic trading platform is a computer system that can be used to place orders for financial products over a network with a financial intermediary. This includes products such as shares, bonds, currencies, commodities and derivatives with a financial intermediary, such as a...
brings market access and transparency to participants globally.
Management
The governance of MEX vests with the Board of Directors. The Board comprises 7 Directors.- Board of Directors including Managing Director.
- Chief Executive Officer.
The Chief Executive Officer who is a full time employee is an expert in the field with 10 years experience in futures market operations. Besides the Board, CEO is assisted by various committees like Membership Services Committee, Compliance Committee, Clearing and Settlement Committee and Disciplinary Committee, entrusted with handling independent portfolios.
Management of Exchange is liable to set a chain to regulate its affiliates as Member or Non-Member client. Exchange has to make safeguard of amount of participants. Trading management, Member management, formation of market safeguard are essentials.
Affiliation
MEX Nepal was affiliated with South Asian Federation of Exchanges (SAFE)on 20th December 2010 and Association of Futures Markets (AFM)on 11th April 2011External links
- Official site
- http://www.mexnepal.com/blog/blog.asp
- stock site