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Benefits of MEX

Trading » Benefits of MEX

benefits of mex

Reasons Making MEX Nepal the No. 1 Commodity Exchange in Nepal

In terms of MEX Nepal's Exposure

  • The First Online Commodity Exchange of Nepal.
  • An Exchange and THE ONLY EXCHANGE IN NEPAL functioning on the 125 year old commodity futures trading concept.
  • An exchange with the highest number of members and client base.
  • An exchange with the highest Market capitalization, even exceeding that of the Nepal Stock Exchange.
  • An Exchange with the highest number of products offered for trading in its platform.
  • An Exchange which has generated 5000 or more new employment opportunities in a short span of time.
  • An Exchange that, along with its members and clients, are the highest tax payers among new companies.
  • The first Exchange that is Certified, ISO 9001: 2008 by URS, UK.
  • An Exchange having the membership of SAFE (South Asian Federation of Exchanges) under Affiliate Membership, thereby being the first exchange to have acquired International recognition.
  • An Exchange having affiliation with MAN (Management Association of Nepal, NCC (Nepal Chamber of Commerce) & FNCCI (Federation of Nepalese Chambers of Commerce & Industry) of Nepal.
  • An exchange, and the only exchange in Nepal to provide on-line withdrawal facility enabling traders to withdraw money in a matter of less than an hour.
  • The one and only Exchange that allows clients to withdraw funds directly from the TWS
  • An Exchange, which is a Non-Profit Motive venture.
  • An Exchange, its members and clients who strictly comply with the Anti-Money Laundering Policy and there is no third party transfer also.
  • An Exchange that follows universally accepted and stringent KYC norms.
  • An Exchange vigorously involved in Corporate Social Responsibilities (CSR) to the nation.
  • An Exchange that has the best dispute resolution mechanism in place.
  • An Exchange that Rewards its members monthly and annually for their performances on various categories.
  • An Exchange with regular market analysis and updates in the form of weekly - Newsletters, quarterly - MEX Express, yearly - Year Book.
  • An Exchange that regularly has eminent delegates visiting from various parts of the world. Some of the delegates include Ministers from Sri Lanka, Director of Governance from CME, Delegates from SAFE, SEC Cambodia.
  • An Exchange with Robust Risk management and surveillance systems.
  • The first Exchange in Nepal to acquire Full Membership of Association of Futures Markets, Buenos Aires, Argentina (AFM)
  • The First exchange to take the initiative to train the market patrons with Anti Money Laundering, Directives by FIU, NRB.
  • The First Nepalese Exchange to sign MOU and agreement with CME Group, Chicago on 1st September 2011, making it the highest feat ever achieved in the Nepalese Futures Industry ever.
  • The only Exchange in Nepal to become a part of Dun& Bradstreet Global database, on 23rd July 2012. D&B is the leading source of global business information whose global commercial database accounts for more than 200 million records.

In terms of MEX Nepal's Market Mechanism

  • State of the art, cutting edge trading console with customizable features and more professional software platform for better trading experience in line with the proposed regulatory parameters.
  • Clearing & Settlement modality similar to the globally accepted and internationally accredited Exchange, like CME and MCX. The new model is based on pure order- matching system where all quotes are flown to the market and cleared & settled by the market itself which leads to complete transparency in trade.
  • New trading console based on order matching enables price discovery to support and create the market for local domestic products in the long run with the purpose of physical delivery.
  • Enhancing maximum liquidity with frequent quotes, trades execution and settlement, contributing to the depth and stability of market by enabling Market Making, i.e., a major additional feature of the New Business Model.
  • Market Makers (MM) can have a competitive advantage of getting their orders executed by quoting more competitive prices. MMs can deal with the huge number of trading crowd under Price-Time Priority principle, without actually doing any marketing on their own.
  • Margin Release facilities for MMs which allows them to increase their trade lots as their initial margin goes free for the particular quantities in case of execution of both buy and sell quotes.
  • Order matching is possible among Client-Client, Client-MM and MM-MM which further ensures high liquidity in market.
  • With the new model, any orders' route can be Tracked, Recorded and Viewed separately. All the routes one order passes through is recorded for future reference which ensures efficient order tracking system in the new model.
  • All the fund transfers are done automatically ensuring no any manual intervention and errors leading to safer and correct financial transactions.
  • The more a CM brings the trade lots, the less will be the commission per lot for them which ensures higher part of commission to CM and Brokers.