Launch of MTS, MFS at KSE on March 14

The much-awaited leverage products - Margin Trading System (MTS) and Margin Financing System (MFS) - will be implemented through National Clearing Company of Pakistan Limited (NCCPL) at the stock exchange from March 14, 2011. Finance Minister Dr Abdul Hafeez Sheikh would formally announce the launch of the new leverage products including MTS, MFS and Securities Lending and Borrowing (SLB) at a ceremony to be held at Karachi Stock Exchange (KSE) on Saturday (today).
The implementation date of the SLB, however, will be announced in next few days. As many as 27 securities will be eligible for financing under MTS while 65 securities will be eligible for financing under MFS, a notice issued by the NCCPL said. The NCCPL has been registered as an authorised intermediary by the SECP to implement leverage products including MTS, MFS and SLB.
"The MTS will be implemented by the NCCPL, in the capacity of an authorised intermediary, in co-ordination with the Karachi Stock Exchange, from March 14, 2011," a NCCPL notice issued on Friday said.
The MTS eligible securities are Arif Habib Corporation Limited (AHCL), Adamjee Insurance Company Limited (AICL), Askari Bank Limited (AKBL), Azgard Nine Limited (ANL), Attock Refinery Limited (ATRL), Bank Al Falah Limited (BAFL), D.G. Khan Cement Company Limited (DGKC), Engro Corporation Limited (Engro), Fauji Fertiliser Bin Qasim Limited (FFBL), Fauji Fertiliser Company Limited (FFC), The Hub Power Company Limited (HUBC), Kot Addu Power Company Limited (KAPCO), Lotte Pakistan PTA Limited (LOTPTA), Lucky Cement Limited (LUCK), MCB Bank Limited (MCB), National Bank of Pakistan (NBP), Nishat (Chunian) Limited (NCL), Netsol Technologies Limited (NETSOL), Nishat Mills Limited (NML), Oil and Gas Development Company Limited (OGDC), Pakistan Reinsurance Company Limited (PAKRI), Pakistan Oilfields Limited (POL), Pakistan Petroleum Limited (PPL), Pakistan State Oil Company Limited (PSO), Pakistan Telecommunication Company Limited (PTC), Sui Southern Gas Company Limited (SSGC) and United Bank Limited (UBL).
The eligible securities for Margin Financing System include Allied Bank Limited, Attock Cement Pakistan Limited, Arif Habib Corporation Limited, Adamjee Insurance Company Limited, Askari Bank Limited, Amtex Limited, Azgard Nine Limited, Attock Petroleum Limited, Attock Refinery Limited, Bank Alfalah Limited, Bank Al Habib Limited, The Bank of Punjab, Byco Petroleum Pakistan Limited, Century Paper and Board Mills Limited, Cherat Papersack Limited, Crescent Steel and Allied Products Limited, D.G. Khan Cement Company Limited, Engro Corporation Limited, Engro Polymer & Chemicals Limited, Faysal Bank Limited, Fatima Fertiliser Company Limited, Fauji Cement Company Limited, Fauji Fertiliser Bin Qasim Limited, Fauji Fertiliser Company Limited, Ghani Gases Limited, Habib Sugar Mills Limited, Habib Bank Limited, Habib Metropolitan Bank Limited, The Hub Power Company Limited, ICI Pakistan Limited, International Industries Limited, Kot Addu Power Company Limited, Lotte Pakistan PTA Limited, Lucky Cement Limited, Mari Gas Company Limited, MCB Bank Limited, Meezan Bank Limited, Millat Tractors Limited, National Bank of Pakistan, Nishat (Chunian) Limited, Nishat Chunian Power Limited, Netsol Technologies Limited, Nishat Mills Limited, Nishat Power Limited, National Refinery Limited, Oil & Gas Development Company Limited, Pak Elektron Limited, Pakistan Reinsurance Company Limited, PICIC Growth Fund, Packages Limited, Pakistan Oilfields Limited, Pakistan Petroleum Limited, Pakistan Refinery Limited, Pakistan State Oil Company Limited, Pakistan Telecommunication Company Limited, Silkbank Limited, Sui Northern Gas Pipelines Limited, Sitara Peroxide Limited, Sui Southern Gas Company Limited, Tariq Glass Industries Limited, Thal Limited, Thatta Cement Company Limited, Treet Corporation Limited, TRG Pakistan Limited - Class - (A) and United Bank Limited.
For the successful implementation of the MTS, the NCCPL has asked all the clearing members to complete the admission formalities as soon as possible well before the implementation date, so as to participate in MTS in the capacity of trading financier and financee, as the case may be. Moreover, clearing members desirous of participating as trading financier have also been asked to contact the Central Depository Company for the opening of a separate CDC account.