Market maker on PSX: Gong ceremony held for Meezan Bank onboarding

KARACHI: A gong ceremony was held at the Pakistan Stock Exchange (PSX) to welcome Meezan Bank Limited onboard as a market maker for the Shariah-compliant debt securities on PSX.

An agreement was signed between the PSX and Meezan Bank on Monday at the PSX Trading Hall whereby Meezan Bank becomes the first Islamic bank to be recognized as a Market Maker for the Shariah-compliant debt instruments on PSX.

The agreement was signed between Farrukh H. Khan, MD and CEO, Pakistan Stock Exchange, and Ariful Islam, Deputy CEO, Meezan Bank. Also present at the ceremony were the board of directors of PSX and senior management of both the organizations.

On this occasion, Farrukh Khan, the MD and CEO of PSX, said it was indeed a welcome development whereby yet another bank was coming onboard as designated market maker for debt securities on PSX. The fact that Meezan Bank, Pakistan’s leading Islamic bank, was one of the first banks to be designated as market maker on PSX showed its commitment to the development of the capital market of the country.

“We are confident that the addition of Meezan Bank as market maker will add depth and growth to the debt market of Pakistan,” he said.

“I wholeheartedly congratulate and welcome them on their taking upon this new role as market maker,” he added.

The Deputy CEO of Meezan Bank, Ariful Islam, said, “We strongly support and believe that the development of the capital markets is critical for the future growth and success of any economy. We are delighted to be given this opportunity to play this role and we see this as a landmark development for the Islamic capital markets of Pakistan as we continue to witness the evolution of Islamic finance in Pakistan.”

Meezan Bank remains committed to the growth and expansion of Islamic finance through the introduction of new products, technological innovation and ease of accessibility for end users, he said.

“We have recently been recognized as the Best Bank in Pakistan 2020 by Pakistan Banking Awards, the most prestigious banking award given under the patronage of the State Bank of Pakistan, and we are committed to providing the best quality, value-added services to our customers Insha’Allah. I would like to thank the PSX team for the great work they are doing to develop the capital markets in Pakistan and promote Islamic finance. I am confident that together we will take Pakistan’s capital markets to new heights, Insha’Allah.”

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.

Copyright Business Recorder, 2021