KARACHI - After a gap of few months, the future deliverable contracts were re-launched on Monday at the Karachi Stock Exchange while the market response toward the product was not influential enough as the market experts anticipated it. Earlier, the two regulators, Securities and Exchange Commission of Pakistan (SECP) and KSE had discontinued trading in Future Deliverable Contracts in May 2009. Whereas, trading in one-month single stock futures has started after a break of nearly 11 months. The introduction of futures on 18 counters generated a total turnover of 0.974 million shares which is less than one percent turnover of ready (cash) market. The total generated turnover of the market was 121.6 million shares in the same session. Since the banning of Future Deliverable Contracts in May, the Derivatives Market remained virtually suspended though the Cash Settled Stocks were available there. Though volumes in futures would not be as healthy as they used to be in past but it is step in right direction as it will provide the opportunity to hedge, leverage and short, said market expert M. Sohail. While Ahsan A. Ali at Invest and Finance Securities observed that the collection of about 30 per cent cash margins (based on Value at Risk or VaR) on modified Future Deliverable Contracts was the major reason of registering thin turnover. Previously, no such cash margin was collected on these counters, he differentiated. As this was the first day of trading in modified future contacts so one cannot easily measure the available potential in this market. Therefore, the time would determine the worth and significant of this market in the days to come, he added. Compared to the old futures contracts that were introduced in 2003, there are few differences in the recently introduced deliverable futures. The margin is 100 per cent cash/bank guarantee versus 50 per cent cash previously. Moreover, mark to market profit will be retained by the exchange that was distributed previously. And this time instead of special margin, concentration margin will be applied. All these indicate that trading in futures will not be as easy as it was previously because it will require a lot of cash margin, he detailed.