SECP discusses stock market situation

SECP discusses stock market situation

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has discussed the situation of the stock market, which triggered halt for third time in this week.

The SECP team lead by the Chairman SECP and Commissioner(SM) held a detailed meeting with the CEOs of Pakistan Stock Exchange, National Clearing Company and Central Depository Company (Self-Regulatory Organizations – SROs) this morning, to review and discuss the stock market situation, risk management and business continuity.

The index based market halts were triggered for the third time during this week. This cooling-off period gave an opportunity to investors to align their trading strategy and collection of margins by the Clearing Company.

The participants of the meeting affirmed that risk management system was functioning efficiently and margins were being collected timely.

The Market operations were running smoothly as a whole. The SROs further apprised that their business continuity plans and disaster recovery setup was in place based on SECP’s earlier instructions.

The Chairman SECP emphasized on conducting drills to ensure remote operations of trading, clearing, settlement and custody services while allowing remote access of market participants to such systems in case onsite operations or physical access was impacted.

He also suggested adoption of further preventive measures against spread of coronavirus.

The SECP advised SROs to remain vigilant, continue to provide uninterrupted access to market participants and ensure effective risk management while maintaining actively engagement with their boards of directors and committees for close coordination.

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