KSE introduces UIN system for risk mitigation
Friday, 28 August 2009
KARACHI, Aug 27: The Karachi Stock Exchange has decided to introduce an efficient risk mitigating measure by changing the existing margining regime from member-level to the Unique Identification Number (UIN) level, according to Daily Times..
The UINs (Client) Level Margining System will be operational on post-trade basis for the ready market from October 01, 2009.
In the new system the related UINs (clients or proprietary account) will be allowed to trade in the ready market subject to availability of collateral (margins/Mtm losses) pledged through their sub or house accounts maintained under respective member's participant account in central depository system (CDC).
The new regime will be implemented on post-trade basis whereby at the end of trading day, UIN-wise margin requirements against exposure margins and MtM losses will be determined on the basis of collateral available in terms of margin eligible securities pledged through the client's sub-account or member's house account maintained under respective member's participant account.
On next trading day, member will not be allowed take further exposures on account of short margined UINs.
By default cash and bank guarantees deposited with the Exchange by the member will be utilized towards margin requirements against exposures margins and MtM losses of member's proprietary account.
However, a member may give the exchange and 'undertaking' for authorising it to utilise his excess collateral in terms of margin eligible securities pledged through his house account or in terms of cash and bank guarantees or both for meeting margin deficits in his clients' accounts in proportionate to their margin shortfalls.
Considering a paradigm shift from existing member level margining system to UINs level margin regime, the exchange will provide the members a new exposure demand report determined on UINs level margin system through a new URL for facilitating them cope with new system by its implementation date.
ISLAMABAD: The Islamabad stock market witnessed a firm trading session on Wednesday as the ISE 10-share index was up by 23.77 points to close at 2,034.94 points from its previous level of 2,011.17 points. Of the total 141 participant companies, 69 climbed upward and 72 turned negative.
Total turnover increased to 1.553 million shares as against 1.175 million shares at the opening of the day, showing a total increase of 0.377 million shares. Unilever Pakistan was the top gainer as its share value shot up by Rs 39.20 to close at Rs 2,224.20 after opening at Rs 2,185. Siemens Engg was the second major gainer as its share value increased by Rs 31 to close at Rs 1,110 from its opening at Rs 1,079. Shield Corp was the major loser of the day as its share price declined by Rs 2.62 to close at Rs 49.96 as compared to its previous level of Rs 52.58. In terms of volume Adamjee Insurance was on top with 0.106 million shares. DGK Cement and PTCL remained second and third with 0.100 million shares and 0.708 million shares respectively.
LAHORE: The Lahore Stock Exchange (LSE) closed higher on Wednesday with a decline in the volume. The LSE 25-share index ended at 2,556.09 points, adding 42.04 points to close at 2,514.05 points.
The volume of market remained at 11.81 million shares, which was 3.54 million shares more than Tuesday's turnover of 15.36 million shares. Pakistan Oilfields was the major gainer and surged Rs 9.09 to close at Rs 192.28 as against its opening at Rs 183.19. Adamjee Insurance was the major loser and declined by Rs 1.85 to close at Rs 102.90 from its opening at Rs 101.05. PTCL was the major volume leader with 1.42 million shares turnover. It lost 22 paisas to close at Rs 21.72 after opening at Rs 21.94.
The UINs (Client) Level Margining System will be operational on post-trade basis for the ready market from October 01, 2009.
In the new system the related UINs (clients or proprietary account) will be allowed to trade in the ready market subject to availability of collateral (margins/Mtm losses) pledged through their sub or house accounts maintained under respective member's participant account in central depository system (CDC).
The new regime will be implemented on post-trade basis whereby at the end of trading day, UIN-wise margin requirements against exposure margins and MtM losses will be determined on the basis of collateral available in terms of margin eligible securities pledged through the client's sub-account or member's house account maintained under respective member's participant account.
On next trading day, member will not be allowed take further exposures on account of short margined UINs.
By default cash and bank guarantees deposited with the Exchange by the member will be utilized towards margin requirements against exposures margins and MtM losses of member's proprietary account.
However, a member may give the exchange and 'undertaking' for authorising it to utilise his excess collateral in terms of margin eligible securities pledged through his house account or in terms of cash and bank guarantees or both for meeting margin deficits in his clients' accounts in proportionate to their margin shortfalls.
Considering a paradigm shift from existing member level margining system to UINs level margin regime, the exchange will provide the members a new exposure demand report determined on UINs level margin system through a new URL for facilitating them cope with new system by its implementation date.
ISLAMABAD: The Islamabad stock market witnessed a firm trading session on Wednesday as the ISE 10-share index was up by 23.77 points to close at 2,034.94 points from its previous level of 2,011.17 points. Of the total 141 participant companies, 69 climbed upward and 72 turned negative.
Total turnover increased to 1.553 million shares as against 1.175 million shares at the opening of the day, showing a total increase of 0.377 million shares. Unilever Pakistan was the top gainer as its share value shot up by Rs 39.20 to close at Rs 2,224.20 after opening at Rs 2,185. Siemens Engg was the second major gainer as its share value increased by Rs 31 to close at Rs 1,110 from its opening at Rs 1,079. Shield Corp was the major loser of the day as its share price declined by Rs 2.62 to close at Rs 49.96 as compared to its previous level of Rs 52.58. In terms of volume Adamjee Insurance was on top with 0.106 million shares. DGK Cement and PTCL remained second and third with 0.100 million shares and 0.708 million shares respectively.
LAHORE: The Lahore Stock Exchange (LSE) closed higher on Wednesday with a decline in the volume. The LSE 25-share index ended at 2,556.09 points, adding 42.04 points to close at 2,514.05 points.
The volume of market remained at 11.81 million shares, which was 3.54 million shares more than Tuesday's turnover of 15.36 million shares. Pakistan Oilfields was the major gainer and surged Rs 9.09 to close at Rs 192.28 as against its opening at Rs 183.19. Adamjee Insurance was the major loser and declined by Rs 1.85 to close at Rs 102.90 from its opening at Rs 101.05. PTCL was the major volume leader with 1.42 million shares turnover. It lost 22 paisas to close at Rs 21.72 after opening at Rs 21.94.