NCCPL reduces security deposit requirements

KARACHI: The National Clearing Company of Pakistan Limited (NCCPL), the only licensed clearing house in Pakistan, has substantially reduced the security deposit requirement, a statement said.

NCCPL, which acts as the Central Counter Party in respect of all trades and transactions carried out at the Pakistan Stock Exchange, as part of its continuous endeavour to facilitate market participants, rationalises the cost of services, implement prudent risk management measures and to promote ease of doing business, has substantially reduced the security deposit requirement prescribed for the CIS admitted as non-broker clearing members (NBCMs). NCCPL has introduced a progressive security deposit requirement linked with the assets under management of CIS.

This measure will lead to reduction in security deposits ranging from 40 per cent to 60 per cent for various CIS admitted by NCCPL as NBCM.

This reduction will encourage CIS to apply for the admission as NBCM, which will ultimately result in enhancing the capacity of securities brokers to take exposure.

Further, it will also reduce the settlement risk by shifting the settlement obligation to the respective NBCM.

“We are very thankful to the Mutual Fund Association of Pakistan (MUFAP)” for the help and support extended during the process and place on record our gratitude to [the] Securities and Exchange Commission of Pakistan for enabling expeditious implementation of the initiative.

NCCPL would continue to look for every possible opportunity to provide cost effective, operationally efficient and seamless services to facilitate the market participants and promote ease of doing business.