In order to further broaden the investor base of Government securities, State Bank of Pakistan has decided to allow trading of Government Securities (Market Treasury Bills, Pakistan Investment Bonds & GOP Ijara Sukuk) on the Stock Exchanges. However, the current OTC market of Government Securities and all its associated platforms will continue to work as usual. Accordingly, it has been decided that:

1. All Primary Dealers, as appointed by State Bank of Pakistan on annual basis in accordance with rules governing primary dealer system, are allowed the following:

a. Proprietary Trading of Government Securities on the stock exchanges provided such trading is carried out by the PD directly on the workstation given by the Exchange for this purpose. Such PDs will be referred as ‘Trading Participant’ on the Exchange

b. Act as a market maker on the Exchange for government securities.

c. Settle and clear the transactions executed by their customers through other designated Trading participants on the Exchange.

2. All PDs who opt to participate as a Trading Participant / Market Maker on the Exchange will be required to formally inform SBP about the start date of their operations.

3. All Non-Primary Dealer Banks/DFIs desirous of transacting on own account or settle and clear transactions executed by their customers will have to route transactions through other designated Trading participants on the Exchange.

4. All banks and DFIs will report own account transactions conducted on the stock exchanges to SBP, through MMCRS as per existing procedure.