Commodity Exchange has several benefits associated with it. The most important of them are price discovery and price risk management. Licensing of a commodity exchange is covered under section 5 of the Futures Market Act, 2016.
All commodity brokers are required to be registered with SECP for providing service as broker. Licensing of commodity brokers is covered by the Commodity Exchange and Futures Contracts (CEFC) Rules, 2005. The CEFC Rules prescribe the eligibility conditions, registration procedure, and obligations and responsibilities of brokers. Further, the CEFC Rules also prescribe procedure for registration of commodity futures contracts.
Grant and Renewal of License
The detailed procedure for grant and renewal of license as a Futures Broker is provided in the checklist.
