Regd. No.

: 1298/067/068

COMMODITY FUTURES EXCHANGE LTD

Business Proposal

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com www.cfxnepal.com

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com
www.cfxnepal.com

Regd. No.: 1298/067/068

Dear Valued Member

We would like to invite you join a new chapter in the commodities exchange market in Nepal. Commodities Futures Exchange would like to invite to your company to join us in this exciting future. We have established CFX Ltd. to address this market in a positive way that will be beneficial for the long-term growth of this industry. We are pleased to offer some groundbreaking new initiatives that are unparalleled in this industry. Please consider this a formal proposal from us to initiate a membership that will yield success to you, your clients and to CFX. Thanking you,

Commodity Futures Exchange Ltd

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com
www.cfxnepal.com

Regd. No.: 1298/067/068

ABOUT US
Commodity Futures Exchange (CFX) is a futures-based commodity exchange established in June 2011 under Company Act 2003 of the Government of Nepal. CFX has been organized under relevant rules and regulations. We have committed ourselves to an open futures market and the construction of a harmonious market environment. CFX adheres to the guidelines of "legislation, supervision, self-regulation and standardization. We endeavor to become a transparent and product-inclusive futures exchange that focuses on the metals, energy and agricultural products. CFX will establish a secure, orderly, efficient market mechanism and an open, fair, and equitable environment.

Derivatives
A derivative is a financial instrument whose value is derived from the price of a more basic asset called the underlying asset. Underlying asset can be securities, commodities, bullion, and currency, livestock or anything else. Derivatives are commonly exercised as an instrument to hedge risk, but can also be used for speculation purposes.

Commodity Exchange
Commodity exchange refers to the physical center where various commodities and derivative products are traded. It is a platform where standardized, graded products are bought and sold. The majority of trading is done in futures contracts, that is, agreements to deliver goods at a set time in the future for a price established at the time of the agreement. Futures trading allow both hedging to protect against serious losses in a declining market and speculation for gain in a rising market.

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com
www.cfxnepal.com

Regd. No.: 1298/067/068

Clearing Members (CM)

A Clearing member is an independent entity, which under the watchful eyes of the exchange holds responsibility for setting trading accounts, learning trades, collecting and maintaining margin monies, regulating delivery and reporting trading data. CFXs learning members are economically well-managed closely monitored and carefully selected companies.

Non-Clearing Members (NCM)

Non-Clearing Members are professionals who facilitate clients for trading. It is a part of an exchange, but does not possess the ability to settle or clear transactions. NCMs are paid a fee or commission for drawing up contracts and for effective sales.

Client(s) / Trader(s) / Investor (s)

Clients are the end users who buy and sell futures contracts on the exchange. There are no limitations on becoming a trader. Anyone is eligible to trade after completing legal formalities of the exchange through the NCM. Clients having prior knowledge on the c commodities market can trade through our user-friendly platform

Benefits of Trading with CFX

1. Robust, fully-validated software platform that focuses on the end user needs 2. Professional and dedicated team of experts 3. Transparent price discovery mechanism with pricing that mirrors global prices for all relevant commodities 4. Trading opens when the markets all around the world are open to guarantee unsuspecting price drops.

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com
www.cfxnepal.com

Regd. No.: 1298/067/068

5. Relevant pricing scheme to match the prices of the local Nepalese market 6. Spreads based international commodities and local market forces 7. Floating profit for all contracts 8. Only exchange to provide Gold Delivery for all expiring gold contracts based on prevailing laws

Software
We are using a fully customized version of Vertex 9.5 that has been catered to meet the requirements of our clients. They offer features that are unseen the software platforms unavailable in Nepal today. Some of these features are built in towards catering towards risk management for our clients. These features are focusing towards stop-losses and other trading options. Our software features are listed below: 1. Fully integrated stop/loss and risk management features with one-click 2. User friendly software with real time reporting capabilities 3. Capable of making trading statements real-time to see net profit/ loss of client 4. Technical analysis looking at relevant historical data 5. Screen can be customized to clients individual needs

What separates us?

We will be offering physical gold delivery to the client(s) 50% floating profit to the customers based on daily trades Providing 3.5 % bank interest to the NCM (Non-Clearing Members)from clients segregate account Minimum initial margin for trading

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com
www.cfxnepal.com

Regd. No.: 1298/067/068

Spread based on global market and User friendly and globally recognized standard trading platform.

Products and Services

CFX is providing reliable and secure trading platform in futures market. Easy to use trading platform provides real time order booking and risk management. It has globally recognized standard commodities for trading. As pioneer, first time in Nepal, we are providing Physical Gold Delivery in the commodity futures market. Currently, we provides trading platform on metal and energy products. The current and other products that are in the pipeline of our company are listed below: Agro based Products Cocoa Coffee Corn Cotton Sugar Wheat

Metals -

Gold Platinum Palladium Silver

Copper Zinc

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com
www.cfxnepal.com

Regd. No.: 1298/067/068

Oil and Oil seeds Soybean Soybean oil

Energy Crude Oil Brent Crude Oil Heating Oil Natural Gas

NCM (Non-Clearing Member) Investment Structure:

S.N. 1. 2. 3. 4. Particulars Registration Fee Software Fee Segregate A/C Collateral / Member Deposit Amount ( In NPR ) 1,00,000 + VAT 1,00,000 + VAT 50,000 50,000 Remarks Non-Refundable Non-Refundable (for 99 members) Refundable Refundable

Note: The above software fees include 99-client software and become unlimited when NCM deposits Rs. 250,000 in total. This is a limited time offer for our inaugural members and may be subject to change.

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com
www.cfxnepal.com

Regd. No.: 1298/067/068

CFX Organizational Structure

Commodity Futures Exchange (CFX)

Clearing Member (Clearing and Settlement) Non- Clearing Members

Trader/Client

Trade Tower Nepal (TTN), Fifth Floor, Ward No: 11, Thapathali, Kathmandu, Nepal Tel.: 01-5111010/11/12, Fax: +977-1-5111013, Post Box: 21199, Email: info@cfxnepal.com
www.cfxnepal.com