IFMP Commodity Brokers Certification (CBC), Pakistan cheat sheet
IFMP Commodity Brokers Certification (CBC), Pakistan · Keep the key ideas within reach.
Commodity Brokers Certification (CBC) - Core Knowledge Reference
PMEX (Pakistan Mercantile Exchange) is the only licensed commodity futures exchange in Pakistan, regulated by the Securities and Exchange Commission of Pakistan (SECP) under the Futures Trading Act, 2013; brokers must be SECP-registered and PMEX-member to trade client accounts.
Client onboarding requires CNIC verification, National Tax Number where applicable, a signed client agreement, risk disclosure statement, and Know Your Customer (KYC) screening under SECP AML/CFT Regulations before any order is accepted.
Segregated client money is mandatory: client margin and settlement funds must be held in a separate bank account from the broker's own funds, and are not available to satisfy broker liabilities.
Initial margin is the percentage of contract value required to open a position; maintenance margin is the level below which a margin call is triggered; if the client fails to top up, the broker must close out positions to limit loss.
Mark-to-market (MTM) is settled daily: unrealised profit or loss on open positions is credited or debited to the client's account at the daily settlement price, and cumulative losses reduce available margin.
Order types: market order (executes at best available price), limit order (executes at or better than a specified price), stop order (becomes a market order when a trigger price is hit), and stop-limit order (becomes a limit order at the trigger).
Contract specifications - underlying asset, contract size, quotation unit, tick size, delivery month, trading hours, and last trading day - must be disclosed to the client before the first trade in each contract.
A broker's duties include best execution, suitability assessment of the client's risk profile, timely trade confirmation and statement issuance, complaint handling, and record retention as required by SECP and PMEX rules.
Conflicts of interest must be managed: proprietary trading by the broker, principal-to-client trades, and any commission or rebate arrangements require disclosure and, where required, client consent.