KARACHI: National Bank of Pakistan (NBP) and Pakistan Stock Exchange (PSX) on Tuesday signed an agreement to onboard NBP as a ‘Market Maker’ for government securities listed on PSX.
During a ceremony held at PSX trading hall, PSX welcomed NBP senior management team and started proceedings by striking the Gong to mark the beginning of trading day on the Exchange.
Present at the ceremony were Arif Usmani, president NBP, Farrukh H Khan, MD and CEO PSX, Muhammad Ismail Usuf, Group Chief NBP Treasury and Capital Markets, and senior management of both the organizations.
The PSX MD Farrukh Khan welcomed National Bank of Pakistan as Market Maker for debt securities on PSX. He said the development and growth of debt capital market is an important strategic objective of Pakistan Stock Exchange. It is also a key aspect of the Capital Market Development Plan as a large and liquid debt capital market is critical for the economic development of Pakistan. It is the reason that the SECP and PSX recently introduced regulatory changes allowing banks to become Market Makers.
He said the inclusion of National Bank of Pakistan, one of the largest top-tier banks in Pakistan, as Market Maker of debt securities on PSX is a proud and momentous occasion for the on-going collaboration between banks and the capital markets to develop deepen and expand Pakistan’s debt capital market.
Speaking about the new role NBP will play as Market Maker, Arif Usmani, President and CEO NBP, said today marks an important milestone for NBP for becoming a market maker on the PSX platform.
“The market maker status is a landmark moment for NBP and we are grateful to PSX for this opportunity”, he said.
He said it is a pleasure to visit the Pakistan Stock Exchange for the Gong Ceremony which signifies the commitment of NBP and PSX to work together for deepening of debt and capital markets in Pakistan and improving financial intermediation.
Arif Usmani said NBP is committed to playing a role in diversifying the investor-base of debt securities by tapping digital distribution channels to promote investment and develop the debt securities market in Pakistan.
“We are confident that NBP, as a market maker, will add depth to the debt market and provide liquidity which is critical for the functioning of an efficient and vibrant market”, he added.
A well-developed debt market is essential for growth of the economy and NBP is committed to work towards this goal as the bank’s vision is to enable sustainable growth and inclusive development in the economy, he said adding that the market maker initiative will allow a much wider group of investors to participate in the government debt market.
“It will facilitate capital market development by mobilizing domestic resources and channeling them effectively.
We look forward to building a strong relationship with Pakistan Stock Exchange and continue to promote efforts to develop local capital market
which is in the interest of all the market participants”.
Market Makers perform the crucial role of providing liquidity and depth to the market by facilitating investors to buy and sell securities through continuously quoting two-way prices, i.e., bid and offer prices.
Copyright Business Recorder, 2021