PSX agreed to on boarding of HBL as 'Market Maker'
He said that development of debt markets is an important strategic objective of PSX
ISLAMABAD (Dunya News) – Pakistan Stock Exchange (PSX) and Habib Bank Limited (HBL) has signed the agreement on Sunday at the PSX trading hall where by HBL becomes ‘Market Maker’ for debt instruments listed on PSX.
A Gong Ceremony was held at Pakistan Stock Exchange (PSX) to welcome HBL on-board as a Market Maker for debt securities on PSX, said a press release issued by PSX here.
The agreement was signed between Managing Director (MD) and Chief Executive Officer (CEO) Pakistan Stock Exchange, Farrukh H. Khan and President and CEO – HBL, Muhammad Aurangzeb.
Also present at the ceremony were the Board of Directors of PSX and senior management of both the organizations.
On this occasion, MD and CEO of PSX Farrukh Khan said, “This is a very important step in developing collaboration between the banking sector and capital markets.
He said that development of debt markets is an important strategic objective of PSX and critical for the economic growth of Pakistan. Hence, it is a very positive development that the largest bank of Pakistan is coming onboard as designated Market Maker for debt securities listed on PSX, he said.
Managing Director (MD) PSX said that PBL, which was also the first company to be listed on the Stock Exchange, is now going to act as market maker for corporate and government debt securities listed on PSX”.
He further stated, “We are confident that HBL as market maker will add to the depth and development of the debt capital market of Pakistan.
“I congratulate and welcome HBL in their new role as Market Maker”.
President and CEO, HBL, Muhammad Aurangzeb, added, “Today’s signing ceremony marks the commencement of a market-making relationship between HBL and the Pakistan Stock Exchange (PSX).
He said that this is a historic moment, and “we are grateful for PSX’continued trust in the Bank.”
He said the arrangement allows investors to buy and sell debt securities with HBL willing to act as a buyer and/or seller.
President, HBL said that his will not only increase the attraction for debt instruments as an investable asset and add greater liquidity to the exchange but will also pave the way to enhance the outreach of the debt market.
“We look forward to building a strong relationship with the Pakistan Stock Exchange (PSX) and continue to play our role in developing the economy of the country, “he said.
He said that 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.