The much-awaited leverage product - Market Trading System (MTS) - is most likely to be launched at the country's stock exchanges in the last week of February 2011, it is reliably learnt. Sources said Securities and Exchange Commission of Pakistan (SECP) Chairman Muhammad Ali Ghulam Muhammad during his first visit to Karachi Stock Exchange (KSE), here on Monday discussed the issue with members.
"The SECP chairman underlined the need for a leverage product to boost trading activity at the share market and assured KSE members that the new leverage product would be available from the last week of the current month," a member told Business Recorder after the meeting. The SECP had already approved the leverage product. Recently, the concerned ministries also approved the product.
Investors believe that due to absence of any leverage product, trading activity at the bourse has drastically declined. They said after the launch of the MTS, the market would see trading volumes increasing in days to come. Meanwhile, the SECP chairman paid his first visit to KSE after assuming his office and had a meeting with the members. He also attended the meeting of KSE board of directors. During these meetings various issues related to stock exchange were discussed.
The SECP chairman said the nominated directors will act independently and not directed or dictated by the Commission. He also advised the member directors to decide each issue on merit independently. He said the SECP will be putting in all efforts on the proper auditing of listed companies' accounts so that they could post accurate accounts. He also advised the KSE management to carry out some research on rolling over the deliverable futures.