The Pakistan Stock Exchange (PSX) on Friday announced the introduction of a new futures eligibility criteria and the launch of 90-day maturity Deliverable Futures Contracts (DFC). The changes would come into effect from DFC August 2021 and would start from July 26.
According to a local media report, many investors who believe that the current 30-day future contract was the spoiler of the market as it put the market under selling pressure in the last week of every month, warmly greeted the move.
The PSX said in a statement that as per the new criteria, there would be no segregation of A, B categorisation. “Stocks would be selected based on such quantitative factors that measure real liquidity”. Exchange Traded Funds (ETF) would also be eligible if certain conditions were met.
“However, such companies that have obtained stay order from court against any inquiry/investigation initiated by the Commission shall not be eligible”, PSX observed. All eligible companies and ETFs shall be eligible for trade on Deliverable Futures and Cash Settled Futures Markets.
PSX Managing Director Farrukh H. Khan said, “The 90-day DFC shall open each month such that the market shall have three different maturities (current month expiry, next month expiry and last month expiry) at the start of each contract month”.
He said that based on the recent notified list, 84 companies and one ETF were futures eligible.
