Every now and then i keep hearing about Margin Trading System (MTS) and MTS eligible securities.
But which broker is offering MTS.
I have accounts with KASB, BMA and IGI. And none of these brokers allows their customers to buy shares on leverage (MTS).
Can anyone guide, through which broker one can buy shares on leverage(MTS)?
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35 replies to this topic
#32
Posted 01 February 2012 - 11:44 AM
KSE Notice - Modifications in Margin Trading System
Feb 01, 2012
Feb 01, 2012
Click Here For: "Daily Reports From Different Brokerage Houses"
#33
Posted 01 February 2012 - 11:46 AM
Individuals allowed to act as financier in Margin Trading System
Individuals have been allowed to participate as a financier and lender in the Margin Trading System (MTS) from February 6, 2012 while the cash margin has also been reduced to 15% from 25%. In this regard, the National Clearing Company of Pakistan (NCCPL) has announced changes in the MTS with reference to the amendments made in the Securities (Leveraged Markets and Pledging) Rules, 2011 as notified by the Securities and Exchange Commission of Pakistan (SECP). This has been done to implement the incentives for promoting Capital markets announced by the Finance Minister Dr. Abdul Hafeez Shaikh during his visit at the Karachi Stock Exchange on January 21, 2012.
The Minimum Financing Participation Ratio (FPR), which is the minimum equity participation of the Financee as a percentage of Margin Trading (MT) Transaction Value, has also been revised from 25% to 15% in cash, effective from Feb 20, 2012. The Financees will be required to deposit margins on their open position of MTS. The measures would allow more funds to be directed to the stock market thereby improving its efficiency. Furthermore, this measure along with other incentives like immunity from disclosing the source of investment applicable from April 01, 2012 is expected to bring a positive rally with better volumes in the equity market.
(AF)
Individuals have been allowed to participate as a financier and lender in the Margin Trading System (MTS) from February 6, 2012 while the cash margin has also been reduced to 15% from 25%. In this regard, the National Clearing Company of Pakistan (NCCPL) has announced changes in the MTS with reference to the amendments made in the Securities (Leveraged Markets and Pledging) Rules, 2011 as notified by the Securities and Exchange Commission of Pakistan (SECP). This has been done to implement the incentives for promoting Capital markets announced by the Finance Minister Dr. Abdul Hafeez Shaikh during his visit at the Karachi Stock Exchange on January 21, 2012.
The Minimum Financing Participation Ratio (FPR), which is the minimum equity participation of the Financee as a percentage of Margin Trading (MT) Transaction Value, has also been revised from 25% to 15% in cash, effective from Feb 20, 2012. The Financees will be required to deposit margins on their open position of MTS. The measures would allow more funds to be directed to the stock market thereby improving its efficiency. Furthermore, this measure along with other incentives like immunity from disclosing the source of investment applicable from April 01, 2012 is expected to bring a positive rally with better volumes in the equity market.
(AF)
Click Here For: "Daily Reports From Different Brokerage Houses"
#35
Posted 23 February 2012 - 12:54 PM
pkstocks123, on 22 February 2012 - 08:47 PM, said:
AOA,
kindly tell me that any broker of KSE or bank offering MTS OR MFS?
kindly tell me that any broker of KSE or bank offering MTS OR MFS?
Click Here For: "Daily Reports From Different Brokerage Houses"
#36
Posted 23 February 2012 - 12:55 PM
MTS financing finally growing
Thursday, 23 February 2012 12:28
ISLAMABAD: The Finance Minister acceptance of SECP tax reform proposal has generated a small rally of 5% in local bourse in last few trading sessions. And in line with regional markets, the Karachi bourse has so far rallied 11.1% (10.0% in USD) in this calendar year, says a press release issued here on Thursday.
The most interesting thing of the current run up in share prices is that it is accompanied by decent volumes. Compared to last quarter average daily volumes of 59.7mn shares (Rs2.8bn or US$32.2mn), the average daily volumes at Karachi market in this quarter up till now is 119.0mn shares (Rs3.7bn or US $41.0mn). Though volumes have improved it is far lower than average daily of approx 300mn (Rs24.8bn or US$417.5mn) seen in 2003-07.
As a consequence of rising share prices with better volumes, the leveraged positions in MTS and futures have also increased. Though these are not at alarming levels so far and far lower than what it used to be in the past, it may make the share price of actively traded stocks slightly more volatile in the short run.
MTS financing close to Rs900mn Thanks to booming market and recent margin relaxation and allowing individuals to lend in MTS by the regulators, the open interest in the MTS (Margin Trading System) has reached Rs877mn as of February 22, 2012. This level of approx. Rs900mn is seen for the first time since the new leveraged product was introduced by the regulators in March 2011. The MTS rate, however, is not increasing and the average gross rate settled at 16.7% yesterday.
This gives comfort that market is not over leveraged and there is enough supply of funds in the MTS market. At a time when the Karachi bourse was considered to be one of the most actively traded market in Asia, the badla financing (sometime called CFS and COT) averaged Rs33bn with average rate of 15% between 2005-07.
Open interest in Feb contracts reached Rs1.4bn Single stock futures market is also showing some signs of improvement thanks to margin rationalization last year coupled with recent upsurge in share prices. Compared to high of Rs2.3bn at the end of January 2012, the maturing February contract open interest has reached Rs1.4bn yesterday.
Thursday, 23 February 2012 12:28
ISLAMABAD: The Finance Minister acceptance of SECP tax reform proposal has generated a small rally of 5% in local bourse in last few trading sessions. And in line with regional markets, the Karachi bourse has so far rallied 11.1% (10.0% in USD) in this calendar year, says a press release issued here on Thursday.
The most interesting thing of the current run up in share prices is that it is accompanied by decent volumes. Compared to last quarter average daily volumes of 59.7mn shares (Rs2.8bn or US$32.2mn), the average daily volumes at Karachi market in this quarter up till now is 119.0mn shares (Rs3.7bn or US $41.0mn). Though volumes have improved it is far lower than average daily of approx 300mn (Rs24.8bn or US$417.5mn) seen in 2003-07.
As a consequence of rising share prices with better volumes, the leveraged positions in MTS and futures have also increased. Though these are not at alarming levels so far and far lower than what it used to be in the past, it may make the share price of actively traded stocks slightly more volatile in the short run.
MTS financing close to Rs900mn Thanks to booming market and recent margin relaxation and allowing individuals to lend in MTS by the regulators, the open interest in the MTS (Margin Trading System) has reached Rs877mn as of February 22, 2012. This level of approx. Rs900mn is seen for the first time since the new leveraged product was introduced by the regulators in March 2011. The MTS rate, however, is not increasing and the average gross rate settled at 16.7% yesterday.
This gives comfort that market is not over leveraged and there is enough supply of funds in the MTS market. At a time when the Karachi bourse was considered to be one of the most actively traded market in Asia, the badla financing (sometime called CFS and COT) averaged Rs33bn with average rate of 15% between 2005-07.
Open interest in Feb contracts reached Rs1.4bn Single stock futures market is also showing some signs of improvement thanks to margin rationalization last year coupled with recent upsurge in share prices. Compared to high of Rs2.3bn at the end of January 2012, the maturing February contract open interest has reached Rs1.4bn yesterday.
Click Here For: "Daily Reports From Different Brokerage Houses"
