The Karachi Stock Exchange (Guarantee) Limited’s acceptance of treasury bills (“t-bills”) as collateral
Karachi, June 08, 2012 (PPI-OT): The Members of the Exchange are hereby informed that the Exchange has been accepting “T-Bills” from them as collateral for Ready Market against their all Margins and Mark-to-Market losses and for Deliverable Futures Market against their Exposure Margins only.
For this purpose, the following procedures are being followed while acceptance T-Bills as Collateral:
1. The Members are required to give Transfer Instructions to their respective Banks who are maintaining their Investor Portfolio Securities (IPS) Account for transferring of T-Bills to the following IPS Accounts of the Exchange as Collateral:
a. The Karachi Stock Exchange (Guarantee) Limited (KSE) – Ready Market:
(Managing T-Bills as Collateral for Ready Market)
b. Karachi Stock Exchange (Guarantee) Limited – Future Market:
(Managing T-Bills as Collateral for DFC Market)
c. United Bank Limited:
(Operating IPS Accounts for the Exchange)
2. The Members are required to submit Transfer Instructions processed and acknowledged by your Bank and stamp of transferring Bank.
3. All T-Bills are valued on daily basis as per prices published by the Reuters.
4. Haircut of 2.8% on the market value of T-Bills is applied
5. T-bills could be released on the written request of the concerned Member subject to availability of sufficient collateral.
6. All T-Bills are required to be released before 3 Trading Days of their respective maturities.
For more information, Contact:
Risk Management and Market Control and Surveillance
Karachi Stock Exchange
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136