November 21, 2025 (MLN): The Pakistan Stock Exchange (PSX) is launching Cash-Settled Futures (CSF) contracts, marking a significant development in the country's derivatives trading landscape.
This new financial instrument provides investors with an alternative mechanism for futures trading without the need for physical delivery of underlying securities, with settlements occurring through cash payments at T+1, according to a post on their social media platform.
CSF contract specification:
|
Features |
Description |
|
Eligible Stocks |
Eligible securities as per approved criteria (reviewed quarterly) |
|
Contract Multiplier |
500 shares for standardized contract (unless adjusted for corporate actions in the underlying stock) |
|
Listing Date |
First trading day following the last Friday of each calendar month |
|
Listing Price |
Theoretical price based on (i) underlying’s close price (ii) KIBOR (iii) days to maturity and (iv) spread |
|
Maturities |
Spot month and next two calendar months |
|
Symbol |
Stock Ticker-CExpiryMonth (ABC-CDEC) – for standardized contracts. Stock Ticker-CExpiryMonthNI (ABC-CDECNI) – for non-standardized contracts |
|
Lot Size |
1 contract |
|
Minimum Fluctuation |
PKR 0.01 |
|
Circuit Breaker |
PKR 1 or 10%; whichever is higher |
|
Daily Settlement Price |
VWAP in CSF or the theoretical price (in case of no trade during the day) |
|
Expiration Date |
Last Friday of the calendar month |
|
Final Settlement Price |
Underlying’s close price in Ready market |
|
Settlement Method |
Cash settlement @ T+1 |