Mercantile Exchange Nepal

What Mercantile Exchange Nepal does

Mercantile Exchange Nepal Limited (MEX Nepal) is the only operating commodity derivatives exchange in Nepal, incorporated in August 2007 and commencing live trading in January 2009. The firm operates a regulated, electronic marketplace offering futures, options, and physical-deliverable contracts across precious metals (gold, silver, platinum, palladium), energy (crude oil, brent crude, heating oil, natural gas), base metals (copper), and agricultural commodities (cocoa, coffee, corn, cotton, soybean, sugar, wheat, and locally delivered eggs). Its core technology is the proprietary AX1 Trading Platform, a pure order-matching system with price-time priority, supported by an External Price Link (EPL) for global price reference and delivered across Windows, Android, iOS, and Mac operating systems. Notable platform features include odd-lot contract sizing, market depth visualization, and a trade verification facility in which MEX was the first in Nepal and second in Asia to introduce.

The exchange operates a tiered membership model comprising Clearing Members, Institutional Market Makers, Brokers, and Sub-Brokers, distributing access to individual traders (speculators, hedgers) and corporate clients across Nepal. Revenue is generated through three principal streams: (1) per-lot transaction fees and commissions on futures and deliverable contracts (ranging from NPR 50 for micro contracts up to NPR 1,200 for standard precious metals/energy futures), (2) one-time admission fees for membership tiers (NPR 75 Lakhs for Clearing Members, NPR 50 Lakhs for Institutional Market Makers, NPR 25 Lakhs for Brokers, plus refundable member deposits), and (3) customizable commissions retained by Clearing Members on client activity. The firm maintains a zero-debt operating model and reports no venture capital or private equity backing.

Distribution relies on four banking partners (Laxmi Bank, Bank of Kathmandu, Nepal Investment Bank, Century Commercial Bank), the eSewa digital payment gateway, online self-serve client registration (the first in Nepal), and an offline support channel. The exchange holds ISO 9001:2015 certification, is a member of SAFE and AFM, and has an International Information Sharing Agreement with CME Group since September 2011. The CEO was elected Vice Chairman of SAFE for the 2017-19 term. The company is headquartered in Dillibazar, Kathmandu, with 51-100 employees.

Name

Mercantile Exchange Nepal

Legal name

Mercantile Exchange Nepal Limited

Website

https://mexnepal.com

Company type

Private

Founded year

2007

Operating status

Operating

Headcount range

51–100 employees

Short description

Mercantile Exchange Nepal Limited is the only commodity derivatives exchange in Nepal, operating the proprietary AX1 electronic trading platform to offer futures, options, and physical-delivery contracts across precious metals, energy, base metals, and agricultural commodities to clearing members, brokers, and individual traders.

Ownership category

akta.pro rank

Product category

Commodity Derivatives Exchange

NAICS

Commodity Contracts Intermediation (52316), Securities and Commodity Exchanges (523210), Securities and Commodity Contracts Intermediation and Brokerage (5231)

SIC

Commodity Contracts Brokers & Dealers (6221), Security & Commodity Brokers, Dealers, Exchanges & Services (6200)

akta.pro primary industry

Commodity Derivatives (Energy, Metals, Ags) (FSACADAE)

akta.pro secondary industry

Commodity Derivatives Exchanges (Futures & Options on Commodities) (FSAFAMAG)

Keywords

• Commodity derivatives exchange
• Futures and spot trading
• Electronic trading platform
• Physical commodity delivery
• Options market trading

Headquarters

HQ city

Kathmandu

HQ country

Nepal

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Operations, Technology or R&D, Personnel, Infrastructure, Marketing or Sales, Others

Revenue model

1. Transaction Fee / Commission on Futures Contracts: MEX Nepal earns transaction fees from trading in futures contracts. Commission is chargeable per lot (buy and sell) with maximum rates varying by commodity — ranging from NPR 600 to NPR 1,200 per lot for clients, and NPR 300 to NPR 600 per lot for market makers. Micro contracts (Micro Gold, Micro Silver) carry lower commissions of NPR 50 per lot for clients and NPR 6 per lot for market makers.
2. Commission on Deliverable Contracts: Revenue is generated from commission on physically deliverable contracts including Delivery Silver (DSILVER20KG at NPR 850, DSILVER1KG at NPR 200, DSILVER1000GM at NPR 300 per lot), Delivery Gold (DGOLD10GM at NPR 300 per lot), and Eggs (EGGL and EGGM at NPR 10 per lot).
3. Membership Admission and Renewal Fees: MEX generates revenue through admission fees for Clearing Members (75 Lakhs + VAT), Institutional Market Makers (50 Lakhs + VAT), and Brokers (25 Lakhs + VAT). Clearing Members can also charge competitive Admission and Renewal fees to their sub-brokers and clients.
4. Customizable Commission from Clearing Members: Clearing Members earn commissions from clients and can customize charges based on market competition and services provided. The exchange facilitates a customizable commission structure at different levels, where higher trade volumes result in lower per-lot commissions and greater commission retention for both CM and MM.

Pricing tiers

Go-to-market motion2 records

Distribution channels8 records

Marketing channels11 records

Core offering

Mercantile Exchange Nepal operates an electronic commodity derivatives exchange providing futures, spot, options, and physical delivery trading in precious metals, energy, base metals, and agricultural commodities through its proprietary AX1 Trading Platform. The exchange matches orders among clearing members, institutional market makers, brokers, sub-brokers, and individual traders, and earns revenue from per-lot transaction commissions, membership admission fees, and customizable commission structures. It is the only licensed commodity derivatives exchange in Nepal and supports trading on Windows, Android, iOS, and Mac operating systems.

Product overview

Mercantile Exchange Nepal (MEX) operates as an online commodity exchange offering futures and spot trading across agriculture, energy, precious metals, and base metals. The core offering includes the AX1 Trading Platform available on Desktop (Windows), Mobile (Android, iOS), and Mac. MEX provides deliverable products including Gold (10GM), Silver (20KG, 1KG, 1000GM), and Eggs, along with derivative options trading. The exchange supports market data tools (Live Data, Heat Map), professional training programs, and educational publications. The platform uses pure order-matching with market maker liquidity provision.

Differentiator

Problem solved

Functional benefit

Products and services

• AX1 Trading Platform Proprietary Automated Trading System (ATS) and state-of-the-art electronic trading platform supporting commodity derivatives trading with order matching, market depth display, real-time price feeds, trade verification, ALGO trading, and 24-hour online access across Windows, Android, iPhone/iPad, and Mac operating systems. Used by clearing members, market makers, brokers, sub-brokers, and individual traders.
• Precious Metals Futures and Spot Trading Futures and spot trading in precious metal commodities including Gold, Micro Gold, Silver, Micro Silver, Platinum, and Palladium, with maximum client commissions of NPR 1,200/lot for Gold and NPR 1,000/lot for Silver, Platinum, and Palladium. Designed for speculators, hedgers, jewelers, and investors seeking exposure to precious metal price movements.
• Energy Futures and Spot Trading Futures and spot trading in energy commodities including Brent Crude, Crude Oil, Heating Oil, and Natural Gas, with maximum client commissions of NPR 1,200/lot. Designed for energy companies, importers, industrial consumers, and speculators seeking exposure to global energy price movements.
• Agriculture Futures and Spot Trading Futures and spot trading in agricultural commodities including Cocoa, Coffee, Corn, Cotton, Soybean, Soybean Oil, Sugar, and Wheat, with maximum client commissions of NPR 600/lot. Designed for growers, merchandisers, processors, exporters, importers, and speculators seeking price risk management and exposure to soft commodities.
• Base Metals Futures and Spot Trading Futures and spot trading in base metal commodities including Copper, with maximum client commissions of NPR 600/lot. Designed for industrial consumers, manufacturers, and traders seeking exposure to industrial metals price movements.
• Delivery Gold 10GM (DGOLD10GM) Physical delivery gold contract of 10 grams, with maximum commission of NPR 300/lot. Designed for individual investors, jewelers, and retail buyers seeking physical gold exposure through a regulated exchange delivery mechanism.
• Delivery Silver Contracts (DSILVER20KG, DSILVER1KG, DSILVER1000GM) Physical delivery silver contracts in three contract sizes: DSILVER20KG (NPR 850/lot) for institutional and large-volume buyers, DSILVER1KG (NPR 200/lot) for mid-size buyers, and DSILVER1000GM (NPR 300/lot) for retail investors. Century Commercial Bank serves as the designated bank for silver delivery settlements. Designed for jewelers, industrial users, and retail investors.
• Delivery Egg Contracts (EGGL/EGGM) Physical delivery egg contracts (EGGL and EGGM) with maximum commission of NPR 10/lot, designed for poultry producers, distributors, and end users in the agricultural value chain. Launched as the first agricultural delivery contract in the Nepalese market.
• MEX Option Trading Option trading derivative instrument launched as the first of its kind in the Nepalese derivative market in January 2017, accessible via the dedicated MEXN Option Trader mobile application on Android. Designed for traders seeking options-based strategies for hedging, speculation, and risk management on underlying commodity contracts.

Quantifiable outcome

• Trading volume surpassed 2 million transactions by February 2016
• +3 more outcomes

Named customers2 records

Segments7 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature7 records

Partnerships

17 partnerships are on record, tiered minor, flagship and core.

• Mid Valley International College (MVIC)minorStrategic or Co-development Partner · 16 August 2016MEX Nepal signed MOU with Mid Valley International College to cooperate and collaborate in the field of finance education in Nepal, supporting academic development and market awareness programs.
• Royal Securities Exchange of Bhutan (RSEBL)flagshipStrategic or Co-development Partner · 6 April 2016MEX signed an International Information Sharing, Training & Co-operation MOU with Royal Securities Exchange of Bhutan (RSEBL) in April 2016. Multiple delegations from Bhutan visited MEX to learn about commodity exchange operations, and a team of 10 delegates from RSEBL along with the Governor of the Royal Monetary Authority of Bhutan visited in September 2013.
• eSewacoreTechnology or Integration · 29 February 2016MEX Nepal signed an agreement with eSewa as one of its designated payment gateways for transfer of funds in February 2016. eSewa is an electronic payment system associated with more than 50 banks, facilitating online fund transfers for clients.
• Afghanistan Global Commodity Exchange Ltd.minorStrategic or Co-development Partner · 2 February 2016MEX Nepal signed MOU on training and information sharing with Afghanistan Global Commodity Exchange Ltd. in February 2016, enabling regional capacity building and information exchange.
• Mercantile Exchange of MadagascarminorStrategic or Co-development Partner · 25 July 2014MEX Nepal signed MOU on training and information sharing with the Mercantile Exchange of Madagascar in July 2016, facilitating cross-border knowledge exchange in commodity market operations.
• Century Commercial Bank LimitedcoreOthers · 5 June 2014MEX announced Century Commercial Bank Limited as its fourth banking partner in June 2014, coinciding with the launch of its first physical deliverable product (Delivery Silver 20KG). Century Commercial Bank is the designated bank for silver delivery contracts.
• Pioneer Professional AcademyminorStrategic or Co-development Partner · 26 February 2014MEX introduced MCDB (MEX Certified Derivative Basics) in joint initiative with Pioneer Professional Academy in February 2014 to develop understanding and expertise of market participants.
• Pioneer AcademyminorStrategic or Co-development Partner · 26 February 2014MEX Nepal signed MOU with Pioneer Academy (February 2014) for training and information sharing in the commodity market domain.
• Nepal Investment Bank LimitedcoreOthers · 26 September 2013MEX announced Nepal Investment Bank Limited as its third banking partner in September 2013, expanding its banking network for fund transfers and settlement services.
• Mercantile Exchange of BelizeminorStrategic or Co-development Partner · 26 July 2012MEX Nepal signed MOU with Mercantile Belize on International Information Sharing in July 2012, facilitating reciprocal business relationship and information sharing between the two exchanges.
• CME Group (Chicago Mercantile Exchange)flagshipStrategic or Co-development Partner · 1 September 2011MEX Nepal signed an MOU and agreement with CME Group for International Information Sharing on 1st September 2011, becoming the first Nepalese futures exchange to do so. This partnership provides MEX access to global market intelligence, reference pricing data, and international best practices in exchange operations.
• Association of Futures Markets (AFM)coreStrategic or Co-development Partner · 11 April 2011MEX Nepal became an affiliated member of the Association of Futures Markets (AFM) in April 2011. The CEO participated in the 19th AFM Annual Conference in Istanbul (2016) and 20th AFM Anniversary Conference in Buenos Aires (2017) as a panelist, discussing soft commodity markets and industry sustainability.
• Investment Management Services (IMS) Pvt. Ltd.minorGTM or Marketing Partner · 26 February 2011MEX Nepal signed MOU with IMS Pvt. Ltd. in August 2012 to promote services through IMS's Financial Web portal (commoditysansar.com), expanding digital marketing reach.
• South Asian Federation of Exchanges (SAFE)coreStrategic or Co-development Partner · 20 December 2010MEX Nepal acquired affiliated membership of SAFE in December 2010. The CEO of MEX Nepal has been elected as Vice Chairman of SAFE (2017-19) and as Member of SAFE Executive Board (2015-17), demonstrating significant leadership influence within the regional exchange community.
• Bank of KathmanducoreOthers · 1 September 2010MEX announced Bank of Kathmandu as its clearing bank in September 2010, providing clearing and settlement services for commodity trades.
• Laxmi BankcoreOthers · 16 October 2008MEX pens agreement with Laxmi Bank launching the very first concept of segregated account in the country, enabling secure client fund management from the beginning of operations.
• AMI Holdings No.1 Pvt Ltd (Software Vendor)coreTechnology or Integration · 1 September 2007MEX pens MOU with Kappsoft Nepal Pvt. Ltd. as its designated software vendor in September 2007. The software vendor (AMI Holdings No.1 Pvt Ltd) developed and maintains the AX1 state-of-the-art trading platform, fulfilling all software requirements for the exchange.

Scale indicators6 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• National Commodity and Derivatives Exchange (NCDEX): India-based multi-commodity exchange specializing in agricultural commodities with futures and options trading. Directly comparable to MEX in product structure (agricultural commodities) and exchange-based business model, though focused primarily on Indian agricultural markets.
• Multi Commodity Exchange of India (MCX): India's largest commodity derivatives exchange offering futures and options trading across energy, metals, and agricultural commodities. Directly comparable to MEX as a regional commodity derivatives exchange serving similar market participants with similar product types, though operating in a much larger market.

Broad incumbents

• Intercontinental Exchange (ICE): Global exchange operator including ICE Futures, offering commodity derivatives across energy, agricultural, and metals markets. Broad incumbent in commodity derivatives space with significantly larger scale and broader geographic reach than MEX.
• CME Group: Global derivatives marketplace operator (Chicago Mercantile Exchange) offering futures and options across commodities, interest rates, equities, and FX. MEX has an actual partnership with CME Group for information sharing. Broad incumbent in the same commodity derivatives space with vastly greater scale and product breadth.
• Dalian Commodity Exchange (DCE): One of China's major commodity derivatives exchanges, offering futures trading in agricultural, industrial, and chemical commodities. Broad incumbent in the Asian commodity derivatives landscape with significantly greater scale.
• National Stock Exchange of India (NSE): India's largest exchange operator with a commodity derivatives segment offering futures and options on metals, energy, and agricultural commodities. Broad incumbent offering overlapping commodity derivatives capabilities within a wider multi-asset exchange portfolio.
• BSE (formerly Bombay Stock Exchange): India's oldest exchange now operating across multiple asset classes including commodity derivatives. Broad incumbent with similar product overlap (precious metals, agricultural commodities) but much larger scale and broader market positioning.

Regional players

• Pakistan Mercantile Exchange (PMEX): Pakistan's first and only commodity futures exchange offering electronic trading in metals, energy, and agricultural commodities. Highly comparable regional peer operating in a similar South Asian emerging market context with comparable regulatory framework and product offerings.
• Bangladesh Commodity and Derivatives Exchange: Emerging commodity exchange in Bangladesh (also referred to as ACE Derivatives Exchange), a regional South Asian peer operating commodity derivatives trading in a comparable market structure to Nepal. Similar regulatory and market development context to MEX.
• Royal Securities Exchange of Bhutan (RSEBL): Bhutan's primary securities exchange with which MEX has an active MOU for international information sharing and training. Regional peer in a similar emerging market context with limited commodity derivatives offerings, comparable in scale and regulatory environment.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/mexnepal
• YouTubeyoutube.com/channel/UC_kPed5sDgkeJxKAeOoWdhg
• Facebookfacebook.com/mexhome
• LinkedInlinkedin.com/company/mercantile-exchange-nepal-limited
• Pinterestpinterest.com/mexnepal

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Mercantile Exchange Nepal