KSE asked to disseminate top 15 brokers information for futures contract

Posted on 07.26.05 by StockPK Team @ 1:00 pm    

The Securities and Exchange Commission of Pakistan (SECP) has directed the Karachi Stock Exchange (KSE) to disseminate information of top 15 brokers for each futures contract on daily basis. According to a notification of the stock market regulator, “In order to ensure market transparency, effective risk management and to minimise market manipulation at the stock exchange, the Karachi Stock Exchange has been directed to disseminate broker-wise open interest of the top fifteen brokers.”

The position of these brokers would be posted on the KSE website, without mentioning whether the broker is net buyer or seller to maintain secrecy.

The information may be displayed in the form of date, name of broker, open interest in terms of quantity and the amount.

The above information might be placed on the Karachi Stock Exchange website from the introduction of the August Futures Contract.

According to a leading trader, this step would eliminate manipulation in the stock market and would avert crisis, the market saw during March, where investors caught unaware.

The brokers and dealers were selling shares in the futures counter, taking arbitrage with the ready counter vis-a-vis.

He said on the one hand, the regulator wanted transparency, and on the other, they in the past eliminated the brokers’ column in the Karachi Automated Trading System (KATS) screen, a move to help the investors in taking exposures in the share market.

The codes of brokers were removed from the Karachi Automated Trading System to help the investors in deciding on their own to place deals in the choice scrips, not taking cue which stock broker is taking position in the companies or selling particular shares.

Source:Business Recorder