National Bank of Pakistan (NBP) and Pakistan Stock Exchange (PSX) signed an agreement to onboard NBP as a ‘Market Maker’ for government securities listed on PSX.
Speaking about the new role NBP will play as Market Maker, Arif Usmani, President & CEO NBP, said that the 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”.
He added, “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”.
A well-developed debt market is essential for the 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.
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 a local capital market which is in the interest of all the market participants,” he added.
Market Makers perform the crucial role of providing liquidity and depth to the market by facilitating investors to buy & sell securities through continuously quoting two-way prices, i.e., bid and offer prices.
Welcoming National Bank as Market Maker on PSX, Farrukh Khan, MD PSX, 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 for this reason that the SECP and PSX recently introduced regulatory changes allowing banks to become Market Makers”.
He added, “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 ongoing collaboration between banks and the capital markets to develop, deepen and expand Pakistan’s debt capital market”.