Pakistan Mercantile Exchange (PMEX) has re-launched the International Cotton (ICotton) contract based on the response of the market participants and growing interest of investors in ICotton futures contract duly approved by Securities & Exchange Commission of Pakistan (SECP).

Ejaz Ali Shah, Managing Director, PMEX speaking at the re launch of the contract said that they are glad to announce activation of another product, ICotton. PMEX's ICOTTON Contract offers the cotton industry an opportunity to hedge their price risk in a safe and transparent environment using a convenient state-of-the-art trading platform.

PMEX in this respect has inducted a new market maker who will ensure ample liquidity in the market to facilitate entry and exit of investors.

Salient features of the PMEX ICotton contract include; price of the contract is referenced to the futures contract of Intercontinental Exchange (ICE), USA which is considered as the most liquid global cotton pricing benchmark, the price quotation offered is in US Cents/pound and it is a cash settled contract in PKR with no physical delivery involvement.

These unique features of the contract gives the local market participants an international flare with the ease and convenience of local trading.

The contract aims to offer opportunities to the entire value chain of the textiles sector to protect the risk of price variation of their basic raw material, cotton.