KARACHI
We are enthralled at the successful completion of the process of inclusion of Pakistan in MSCI Emerging Market Index with effect from June 01, 2017.
A long awaited and well deserved transition has been achieved through the tireless efforts made by the apex regulator Securities and Exchange Commission of Pakistan “SECP” and Pakistan Stock Exchange “PSX” under the leadership of Chairman SECP and the guidance and support extended by honorable Finance Minister.
After the announcement of the effective date of inclusion, keeping in view the problems faced by Qatar at the time of their inclusion in MSCI Emerging Market Index, many doubts and concerns were raised with respect to the capacity and capability of the capital market stakeholders to manage the event in a flawless manner. However, once again proper planning, close coordination among institutions and collective team work has proved that no milestone is impossible to achieve.
The National Clearing Company of Pakistan Limited “NCCPL” was at the center of the activity being the provider of clearing and settlement services and responsible for performing the risk management function. Recognizing the importance of its role, NCCPL closely worked with the capital market stakeholders to extend required facilitation. The NCCPL’s management worked together towards the accomplishment of the common goal to ensure seamless provision of services during the relevant period. It was also perceived that the event will trigger significant trading activity from the foreign portfolio investors that are mostly clients of the Custodian Banks (reputable foreign financial institutions operating in Pakistan). These Custodian Banks are Custodian Clearing Members of NCCPL and settle the trades that are executed by the Brokers Clearing Members on behalf of their clients directly with NCCPL.
The task in hand was gigantic and can be measured on the basis of the trading activity carried out only on May 31, 2017 which was valued at PKR 54 billion (Regular Market), which was four times more than the average trading values in last six months.
However, NCCPL remained focused on ensuring the seamless settlement of all trades and transactions.
