New TREC Holders

A public or private company desirous of obtaining a TRE Certificate of the Exchange must first submit an application to the Exchange. Every application for TRE Certificate shall be presented to the Exchange which may accept or refuse such application. In applying for TRE Certificate, the applicant company shall follow the procedures determined by the Exchange from time to time. The PMEX Board has the power to establish categories of TRE Certificate and to attach different rights, benefits, obligations and liabilities to each category established. The Board may, from time to time, determine different fees payable for different categories of TRE Certificate and payable for processing applications.

A TRE Certificate Holder desiring to transfer its TRE Certificate, for this purpose shall submit an application to the Exchange along with documents and fee as specified by the Exchange from time to time.

Transfer of TRE Certificate shall be made to entities eligible for TREC Holder under the PMEX Rule Book.

An individual Member desiring conversion of his Membership into TREC, for this purpose shall submit an application to the Exchange along with documents and fee as specified by the Exchange from time to time.

Applicant shall be responsible to pay all the outstanding dues of the Exchange, if any, including the payment of annual subscription fee of the Exchange.

Applicant shall continue to hold a minimum of 51% shareholding in the corporate entity. In case of change/dilution of shareholding below 51% such case shall be treated as transfer of Membership and transfer fee shall be attracted in such cases.

The corporate entity shall fulfill the TRE Certificate eligibility criteria of the Exchange.

In terms of provisions of the PMEX Rule Book, a TRE Certificate Holder shall be required obtain license as Broker within six months from the date of issuance of TRE Certificate and shall commence business not later than three months from the date of obtaining such license with the Securities and Exchange Commission of Pakistan (Commission) under the Futures Brokers (Licensing and Operations) Regulations, 2018.

No TREC Holder shall act as a broker to deal in the business of effecting transactions in the Futures Contract unless it has obtained license from the Commission.

A TREC Holder shall make an application to the Commission in a form and fee as specified by the Commission from time to time, for grant of a license through the Exchange.

The Commission, if it is satisfied that the applicant is eligible for licensing as a futures broker, and that it shall be in the interest of the futures market to do so, may grant futures broker license to the applicant. The license of a futures broker shall be valid for one year.

A broker shall apply for renewal of its license with the Commission, for this purpose shall submit an application through the Exchange 45 days prior to expiry of its license along with documents and fee as specified by the Commission from time to time. The Exchange, along-with letter of recommendation, shall submit the application of futures broker eligible for renewal of license to the Commission one month prior to the date of expiry of its license.

A TREC Holder whose application for renewal has been refused by the Commission shall not deal in Futures Contracts as a broker from and on the date of receipt of the decision.

In terms of provisions of the PMEX Rule Book, a Broker may open its Branch Office(s) for conducting the business and trading of Futures Contracts registered on the Exchange in accordance with the PMEX Rule Book subject to prior approval of the Exchange in writing and completion of the registration formalities. No broker shall operate any branch or appoint any branch head without getting it registered with the Exchange.

In terms of Reg. 23.9 of the PMEX Rule Book, a Broker may suspend or shift or close down its Branch Office(s) in accordance with the PMEX Rule Book by giving 30 days prior notice to the Exchange in writing.

In case of suspension or closure a Branch Office, the TREC holder/Broker shall notify the same to the Exchange along with documents as specified by the Exchange from time to time.