Karachi: The Securities and Exchange Commission of Pakistan (SECP) in partnership with the U.S. Commodity Futures Trading Commission (CFTC) has initiated a series of capacity building training sessions focused on the development, regulation, and oversight of the commodities futures market. This program aims to equip local stakeholders with the necessary skills and knowledge to advance this sector within Pakistan’s economy.
According to Securities and Exchange Commission of Pakistan, the training is being led by Mr. Kevin C. Piccoli, an experienced trainer from the U.S. CFTC. Throughout the program, Piccoli plans to discuss a wide array of subjects such as the operation of derivative markets, their correlation with spot markets, new trends and asset classes, as well as enforcement and adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols.
During the training in Karachi, Akif Saeed, Chairman of SECP, emphasized the significance of the agricultural commodities market in Pakistan. He outlined several key initiatives by SECP including the establishment of Collateral Management Companies, the creation of an Agri-Only category for commodities futures brokers, and ongoing stakeholder consultations aimed at enhancing the commodities derivatives market. He stressed the need for cooperation among all stakeholders to foster a robust commodities futures market in Pakistan.
Additionally, IFC consultant Mr. John McGillicuddy addressed the session, focusing on essential factors necessary for setting up an efficient commodities exchange. Participants, which included representatives from government, regulatory bodies, market intermediaries, capital market infrastructure firms, agri-tech companies, and corporations, discussed the vital link between agricultural commodities markets and trading at the mercantile exchange. They also explored strategies to reinforce regulatory frameworks, thereby increasing investor confidence and promoting market integrity.
The ongoing training program is expected to significantly contribute to the development of Pakistan’s commodities market by enhancing the capabilities of its participants and aligning regulatory measures to foster an effective market environment.