SECP approves inter-exchange trades in listed TFCs – Alfalah Securities Limited

Karachi: The Securities and Exchange Commission of Pakistan (SECP) has approved a regulatory framework to facilitate interexchange trades in listed term finance certificates (TFCs) wherein broker-to-broker (BTB) functionality has been launched at the Bonds Automated trading System (BATS).

According to Alfalah Securities Limited, it will enable brokers to settle their inter-exchange trades directly with the National Clearing Company of Pakistan Limited (NCCPL), resulting in more efficiency and transparency in the trading and settlement process. Earlier, BATS only used to support trading between brokers and investors of a stock exchange where such TFCs were listed and did not facilitate inter-exchange trading in TFCs listed on other stock exchanges. The new mechanism would improve trading turnover and enhance price discovery in the listed debt instruments thereby increasing the efficiency in the system.

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