The Islamabad Stock Exchange (ISE) has drafted a proposal for introducing 'National Market System' (NMS) to streamline the buying/selling of shares at Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE) and ISE through inter-linked online system.
According to an announcement made by the ISE on Friday, under the NMS, the bourses would link their trading systems so that orders of investors at one exchange would be freely matched with those of other exchanges. The new system would cover all market segments and commonly listed securities. Each exchange maintains its identity and regulates all orders which are entered into its trading system.
ISE stated that the members of exchanges with low turnover would pay market access fee of 2 paisa per share traded in every eligible transaction of exchanges with greater turnover. Members of KSE would receive market access fee both from the members of LSE and ISE, whereas members of LSE would receive market access fee from members of ISE.
The advantages of NMS to the investors are greater liquidity, better price discovery, elimination of custody risk in inter-exchange trading lower cost of trade, better quality of trade execution, and broader market access.
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