Bank of Punjab Becomes Market Maker for Debt Securities on PSX

The Bank of Punjab (BOP) has become the market maker for debt securities at Pakistan Stock Exchange (PSX). It is the second bank to join the equity market after Bank Alfalah, while more banks are likely to come in near future.

An agreement was signed between PSX and BOP today at PSX Trading Hall, whereby BOP becomes the first bank to be recognized as Market Maker for both conventional and Shariah Compliant debt instruments on PSX.

The agreement was signed between MD & CEO of Pakistan Stock Exchange, Farrukh H. Khan, and President & CEO, Bank of Punjab, Zafar Masud. Also present at the ceremony were the BOP Group Head of Treasury and FIs, Khawar Ansari, and senior management of both the organizations.


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This development is in-line with the notification issued by the SECP, which allows banks to act as market makers for debt securities.

On this occasion, Khan said,

I am very happy to welcome Zafar Masud and BOP to PSX. It is indicative of their commitment to the development of Pakistan’s capital markets that BOP is one of the first banks to become a market maker on PSX”. He added, “We welcome this development as this will lead to increased growth and dynamism in the debt market, which is crucial for the economic progress of Pakistan.

He said that all stakeholders of Pakistan’s financial ecosystem need to take Pakistan’s debt market to regional and international levels. He further added, “We believe this step will play a significant role towards achieving that end. We are also in discussions with BOP to bring some of their SME clients to the list on the new GEM board. This will also be an important development for Pakistan’s economy, the SME sector, and PSX.”

CEO Bank of Punjab, Masud, said,

Today marks an important day for us. The Bank of Punjab will be the first bank in Pakistan, market making for both conventional and Shariah Compliant securities as well as corporate debt instruments at the PSX portal. This makes us the first public sector bank offering a bouquet of services in collaboration with PSX.

He said, “We see our role expanding beyond a Market Maker for Debt Securities. Through this agreement, we are committing to becoming a leading player in the development of capital markets in Pakistan by enabling greater investor participation and enabling listing of more debt, equity, and non-conventional instruments at PSX.”


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The State Bank of Pakistan (SBP) had recently awarded BOP the status of Primary Dealer of GoP Debt Securities. The bank is also an authorized dealer of GoP Shariah Compliant securities.

With the signing of this agreement, the Bank of Punjab will be able to perform market-making activities for various debt instruments such as Government Debt Securities.

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.



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