ISLAMABAD, Aug 16: The Securities and Exchange Commission of Pakistan has formed a committee to conduct the feasibility of introduction of exchange-traded derivatives market in Pakistan.

The committee has been given the mandate to identify the needs that led to the emergence of exchange-traded derivatives in the international (developed and emerging) marketplace and what benefits these markets gained as a result, an official announcement issued here on Tuesday stated.

The committee will study and recommend whether trading of exchange-traded derivatives is suitable for Pakistani capital markets in its present form. It will cover aspects, such as market infrastructure, systems, risks, investor interest and education, users of derivatives products and other related key matters.

The likely benefits of the exchange-traded derivatives to the Pakistani capital markets, including suitability of exchange-traded derivatives as an alternative to badla financing, will also be covered in the study of the committee. The committee would devise and recommend a plan to enable successful introduction of exchange-traded derivatives in Pakistan.

It is authorized to add other ancillary items associated with the key objectives mandated by the SECP and may also co-opt such members as it may deem fit. The committee would submit its report within 60 working days from the date of its first meeting.