The Pakistan Stock Exchange (PSX) has launched a 90-day deliverable futures contract (DFC), meaning that settlement will take place 90 days after the purchase of stock on the forward counter.
Speaking at the launch of the 90-day DFC regime and new futures eligibility criteria, PSX Managing Director Farrukh Khan termed it a positive development for the stock market as well as the capital market.
“The 90-day DFC shall open each month in such a way where the market shall have three different maturities (current month expiry, next month expiry, and last month expiry) at the start of each contract month,” he said.
“In addition to this, it will eliminate the need for a mandatory one-week rollover period as investors can roll over their existing positions any time before expiry, which will alleviate the rollover week pressure to some extent,” Khan said.
