Margin trading concept paper approved
KARACHI:
Members of Karachi Stock Exchange’s board of directors have agreed in principle to forward a concept paper on margin trading which was produced by an independent committee established by the Securities and Exchange Commission of Pakistan (SECP).
However, sources privy to a KSE board meeting, held on the issue on Monday, revealed that many specific rules still remain under review.
KSE sources revealed that some brokers disagreed with cash margins proposed in the concept paper. No official statement was issued pending complete agreement among brokers.
However, KSE management stressed that the board has approved the concept paper and all further discussions will be in line with the proposals put forth by the SECP committee.
“Members have agreed to the draft in principle but specific rules still have to be formulated,” a source privy to the meeting told The Express Tribune on condition of anonymity.
He added that “80 per cent of the specifics still need to be worked out including the procedure to deal with defaults and non-payments.”
Board member Munir Khanani said: “Consultations will continue but an agreement has been reached on the concept paper and there will not be any changes to the proposals made in that document.”
A committee of the National Clearing Company of Pakistan is also expected to meet on Wednesday to review the concept paper on margin trading. According to NCCPL officials, risk management and technical requirements for facilitating the proposed product will be discussed at the meeting.
Published in The Express Tribune, July 27th, 2010.
Members of Karachi Stock Exchange’s board of directors have agreed in principle to forward a concept paper on margin trading which was produced by an independent committee established by the Securities and Exchange Commission of Pakistan (SECP).
However, sources privy to a KSE board meeting, held on the issue on Monday, revealed that many specific rules still remain under review.
KSE sources revealed that some brokers disagreed with cash margins proposed in the concept paper. No official statement was issued pending complete agreement among brokers.
However, KSE management stressed that the board has approved the concept paper and all further discussions will be in line with the proposals put forth by the SECP committee.
“Members have agreed to the draft in principle but specific rules still have to be formulated,” a source privy to the meeting told The Express Tribune on condition of anonymity.
He added that “80 per cent of the specifics still need to be worked out including the procedure to deal with defaults and non-payments.”
Board member Munir Khanani said: “Consultations will continue but an agreement has been reached on the concept paper and there will not be any changes to the proposals made in that document.”
A committee of the National Clearing Company of Pakistan is also expected to meet on Wednesday to review the concept paper on margin trading. According to NCCPL officials, risk management and technical requirements for facilitating the proposed product will be discussed at the meeting.
Published in The Express Tribune, July 27th, 2010.