Please refer to DMMD circular no. 12 dated July 03, 2012, in which rules governing Primary Dealer system were stipulated.

In order to promote competition and to widen the investor base of Government Securities following changes have been made in rules governing Primary Dealer system:

No.	Current Rule	New Amended Rule
F- Performance Criteria
F-3	Each Primary Dealer (PD) should bring a minimum of 5.0% of the NCB target of MTBs and PIBs during a fiscal year.	Each PD should bring a minimum of 4.0% of the Non-Competitive Bids (NCBs) target of MTBs and PIBs during a fiscal year. However the NCBs of AMCs and NBFCs will not be counted for this purpose.
F-6	Each PD will ensure that at least 50% of its trading with other PDs should be through Electronic Bond Trading System (EBND). This would not include transactions inputted via Voice Trade Reporting mode (VTR).	Each PD will ensure that at least 35% of its trading with other PDs should be through Electronic Bond Trading System (EBND). This would not include transactions inputted via Voice Trade Reporting mode (VTR) and any routing transactions. State Bank of Pakistan will scrutinize all such transactions for conformity of this rule.

Moreover following new rule has been added under section “F- Performance criteria”:

 F-8: Each Primary Dealer should have a minimum portfolio of 250 IPS accounts and shall ensure minimum 15% increase in its IPS accounts during the year.

The above instructions will be effective from July 01, 2013; all other instructions on the subject will remain unchanged.