The State Bank of Pakistan (SBP) has selected 12 financial institutions as primary dealers for market treasury bills and Pakistan Investment Bonds for 2016-17.
The central bank invites applications from banks, development finance institutions (DFIs), investment banks and listed brokerage houses for the appointment of primary dealers for Pakistan’s debt market every year.
The selected banks are NIB Bank, Habib Bank, National Bank, JS Bank, Standard Chartered Bank Pakistan, United Bank, Pak Oman Investment Company, Faysal Bank, MCB Bank, Citibank, Allied Bank and Bank Alfalah.
All these financial institutions served as primary dealers during the last fiscal year (2015-16) as well, SBP records show.
Primary dealers are supposed to participate in the trading of government papers in the primary market by bidding in the auctions of government securities conducted by the SBP from time to time.
Most importantly, these 12 institutions will act as ‘market-maker’ in government securities trading by quoting two-way prices in the market. As market-makers, these institutions ensure that government securities remain liquid in the market and are always ready to be sold or purchased.
Source: The Express Tribune