• 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 RoleCan 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

THANK YOU FOR WATCHING OUR PRESENTATION

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