» Membership » Hallmark Features of MEX Business Model

Membership » Hallmark Features of MEX Business Model

Hallmark Features of MEX Business Model

  • 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.
  • The Business Model will incorporate new entities like, Warehouse Managers, Producers and Merchandisers who are willing to Buy and Sell their products (Next Phase) through the commodity market system of MEX.
  • The business model has become successful in introducing Deliverable Products for the first time in Nepal.
  • Introduction of Market Makers as a separate entity for the very first time in Nepal, who enhances maximum liquidity with frequent quotes, contributing to the depth, stability and liquidity in markets.
  • Clearing & Settlement modality similar to the globally accepted and internationally accredited Exchanges, like CME and MCX. The business 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.
  • The AX1 Trading Software is fully customizable & equipped to permit domestic products with deliverable options. Moreover, the trading software can be accessed through windows, android, iphone, ipad and mac.
  • Clearing Member (CM) as an entity can expand their business networks all over the country by registering the endless number of Brokers and Clients and they can also target the existing members of the industry.
  • 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.
  • The competitive nature of order matching mechanism ensures the availability of competitive quotes for traders. Clients can get competitive quotes because of the lowest spread by large number of MMs. Moreover, they can also view the entire market depth too.
  • Market Makers Quote intentions are permitted only for both Buy and Sell at the same time; this is to avoid unfair Quoting. Even editing of quotes are available, where editing will remove or add same number of buy and sell.
  • Order matching is possible among Client to Client, Client to MM and MM to MM, based on Price-Time priority principle which further ensures high liquidity in market.
  • The New Business Model facilitates effective Risk management system. With the presence of many market makers, one MM can even transfer its open positions to other MMs by closing its open positions for the risk mitigation. In the absence of any MM to take the transferred position, Clearing House will take the ultimate liability. Moreover, MMs can use wider spread to safeguard their positions during unfavorable market conditions.
  • All floating P/L and financial adjustments are done on Mark to Market basis, i.e., floating P/L will be realized in concerned accounts every trading day. In case of profit, one can use the earned profit even before closing the position. It prevents accumulated dues of any market participants to be forwarded for next trading day.
  • 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.
  • Clearing Members and Market Makers have the option to opt for Reference Price source, with fundamental data available to plan their risk management efficiently.
  • Customizable commission structure at different levels makes the transactional fees and commission sharing more flexible.
  • The more a CM and a MM gives the trade lots, the less will be the commission per lot for them which ensures higher part of commission for both CM and MM as their trade lots increases.
  • 24 Hrs technical support and offline support.
  • All the MEX Nepal Servers and Systems run in our Nepal Centre to support greater accessibility and to ensure zero downtime by providing instant backup.