LAHORE - In order to benefit farmers from the best price discovery and enable banks to provide post harvest financing to them, LSE shall soon establish the first ever spot commodity trading platform through a separate subsidiary which will start its operations soon.

This was stated by Aftab Ahmad Chaudhry, MD of Lahore Stock Exchange at a reception hosted by him in the honor of Mr. Andrew Gastaldello, President of Utiba Mobile Financial Services Group of Singapore.

Mr. Aftab stated that spot commodity market is quite opaque where the farmers act as price takers as the price discovery process is monopolized by the middlemen. He said that these middlemen also act as the informal money lenders who are nothing but the loan sharks for our hard working farmers. He said that LSE shall provide a unique spot commodity trading platform through the combination of the exchange technology/systems with the mobile payment system. He said that LSE is in advanced talks with many potential partners to establish the said spot exchange within this calendar year.

 He said that the application for the formation of a company has been pending with the SECP for quite some time and if the same is not approved, then LSE shall form the exchange under the cooperative societies regulations.

Mr. Andrew stated that mobile technology has the potential of bringing the next big change in the business of the Exchange platforms just as the Big Band had brought a revolution in the trading environment of London Stock Exchange. He said that Utiba is uniquely positioned to help the domestic exchange industry to innovate further and aim for a far greater access to a very large mobile subscriber base in Pakistan.

Mr. Andrew stated that Utiba has spent more than a decade developing the leading mobile financial services solutions in the market, in pursuit of its vision of enabling everyone to make mobile payments.

He said that Utiba was in use in more than 30 countries and its mobility platform supports 500 million subscribers and processes over 12 billion transactions per year. He said that in many countries, Utiba’s platform is also being used to send and receive salaries besides other basic or common banking services such as payment of utility bills and sales transactions. He said that Utiba has also signed a Commercial cooperation agreement with MasterCard to deliver and commercialize MasterCard’s Mobile Money Services. He said that Utiba also a long standing relationship with Western Union, and its global client base is a reflection of how Utiba can act as a serious partner for expanding the business of the Exchange industry in Pakistan.