Pakistan Stock Exchange (PSX) and Bank Alfalah signed an agreement at a ceremony held at PSX Trading Hall, making Bank Alfalah the first commercial bank in Pakistan to be designated as a Market Maker for Debt Securities at the PSX.
Accordingly, Bank Alfalah will be able to perform market-making activities for various debt instruments such as Government Debt Securities like PIBs, T-Bills as well as Sukuks.
Market Makers perform the crucial role of providing liquidity and depth to the market by continuously quoting two-way prices, i.e. bid and offer, helping investors to buy or sell securities.
PSX CEO Farrukh H. Khan and Bank Alfalah President & CEO Atif Bajwa signed the agreement. Present at the ceremony were Chairman PSX Sulaiman S. Mehdi, Group Head of Treasury and Capital Markets, Bank Alfalah Mr. Ali Sultan, board members of PSX, and senior management of both the organizations.
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At the ceremony, PSX CEO Farrukh Khan remarked, “Growth of the debt markets is an important strategic objective of PSX and critical for the economic growth of Pakistan. In line with the recent regulatory changes introduced by SECP and PSX, I am very happy that Bank Alfalah has been approved as the first market maker of debt securities at the Exchange.
This will usher a new chapter in the growth of debt markets, thereby ensuring a deep, liquid, and transparent secondary debt market in Pakistan. This will benefit both issuers and investors”.
He said,
Bank Alfalah has a long-standing commitment to the capital markets and is one of the few banks with a presence in both the brokerage and asset management industries. Hence, I am particularly happy that they have also taken this step to become the first bank to become a market maker on PSX.
Moreover, PSX CEO added, “This will help in further developing Pakistan’s debt market to regional and international levels. This requires all stakeholders in the financial system to play an active role, and we believe that this is a significant milestone in the development of the debt markets in Pakistan.”
CEO Bank Alfalah Atif Bajwa said,
Bank Alfalah would like to thank SECP and PSX for their continued efforts in developing and promoting the capital markets of Pakistan. Sharing the same vision, we believe that a well-developed capital market is important from both issuer and investor perspectives.
Furthermore, he said, “At present, the domestic market is primarily focused on bank loans for financing requirements. This needs to be complemented by capital market instruments as an alternative and effective financing medium. Corporates should be encouraged to tap capital markets so that the borrowers can diversify their sources of funding, while investors can have multiple options for investments”.
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