Karachi: In a significant development for the Pakistan financial markets, the Pakistan Stock Exchange (PSX) has announced the induction of Meezan Bank Limited (MEBL) and Habib Bank Limited (HBL) as trading participants for proprietary trading in the Government of Pakistan (GoP) Ijarah Sukuk (GIS). This move follows the approval from the Securities and Exchange Commission of Pakistan (SECP) in accordance with Regulation 6.1(q) of the PSX Rulebook.
The announcement, dated December 16, 2024, comes as part of PSX Notice #PSX/N-1205, which facilitates access to the trading system for Commercial Banks and Mutual Funds. These financial entities, categorized under Non-Broker Debt Market Clearing Members (DMCM) of the National Clearing Company of Pakistan Limited (NCCPL), can now engage in proprietary trading of GIS instruments.
This induction marks a pivotal moment in expanding the trading landscape for GoP Ijarah Sukuk, specifically allowing Meezan Bank and Habib Bank to conduct trading activities exclusively for their proprietary accounts. According to information available from the Pakistan Stock Exchange (PSX), the inclusion of these banks is contingent upon meeting stringent documentary, operational, and technical requirements.
The newly inducted trading participants are granted the capability to engage in trades associated with GIS instruments, which are issued through primary market auctions at the PSX. However, it is essential to note that these institutions are restricted from trading in other fixed income securities within the Bills and Bonds (BnB) market, such as Corporate Debt securities and Government Debt Securities.
This strategic move is designed to bolster the engagement of major financial players in the GoP Ijarah Sukuk market, enhancing market liquidity and investment diversity. The designated market category for this initiative falls under the financial sector, focusing on expanding proprietary trading capabilities for established Commercial Banks and Mutual Funds.