The Securities and Exchange Commission of Pakistan (SECP) on Friday approved introduction of futures contract in cotton to the Pakistan Mercantile Exchange Limited (PMEX). A statement of SECP said the international cotton futures contract will encompass a minimum contract size of 5,000 pounds of cotton, which would be settled through cash in Pakistani rupees on the last traded price of the corresponding month of the international contract.
It said that this new futures contract will meet the needs of all the market participants and will benefit the cotton industry, adding that futures contract would assist the policymakers on the demand, supply and price signals that would help in making policy decisions for the cotton industry.
