After about two years, financing facility for investors under the newly launched leverage products - MTS and MFS - was made available at all the three stock exchanges on Monday. The National Clearing Company of Pakistan Limited (NCCPL) has implemented the two new leverage products. The previous financing system named Continuous Funding System (CFS Mk-II) was discontinued on April 8, 2009.
On the first day of its implementation, the investors availed of financing facility of Rs 3.3 million under MTS at Karachi Stock Exchange. "The new financing system - MTS - has been implemented at all the three stock exchanges on the announced date successfully," Badiuddin Akbar, Head of Operations, NCCPL said. He said 100 participants have been registered as financiers and financees, who participated in the trading under this system.
He said registration of 20-25 more participants is expected soon, while some more large banks and DFIs would also be participating in the system in next few days. He said Rs 3.3 million financing on the first day of its implementation was a good start and hoped this figure will increase in days to come.