UK derivatives trading software vendor Patsystems has won a $1.3 million contract to supply Pakistan's National Commodity Exchange Limited (NCEL) with a trading and settlement system for the country's first electronic commodity futures market.
The three year contract covers licensing, installation and on-going support for the trading and settlement system and includes the development of a customised back office application for NCEL members.
The exchange is expected to be operational with an initial range of futures contracts by mid-2004.
Around $0.9 million of the $1.3 million contract will be recognised as revenue by Patsystems in 2004, with the remainder spread over subsequent years. The terms ensure that the contract is cash positive to the group over the three years.
The vendor won a contract to provide Thailand's Agricultural Futures Exchange with a trading system early last year and says it will use a similar technology for the NCEL system.
Assim Jang, managing director of NCEL, comments: "We chose Patsystems because we felt that they have a clear track record in the provision of technology solutions to commodity exchanges and could provide us with a turnkey solution without the need to engage sub-contractors."
Patsystems says it is able to provide customised systems for both start-up and established exchanges and plans to expand its exchange business in 2004.