SECP Hosts Informative Workshop on Trading Dynamics at PSX for Journalists

In an effort to enhance the understanding of equity trading dynamics at the Pakistan Stock Exchange (PSX), the Securities and Exchange Commission of Pakistan (SECP) organized a comprehensive workshop for journalists at its headquarters. The workshop, held to empower journalists with insights into trading activities, surveillance, and systemic risks, was highlighted in a press release issued on Tuesday.

During the session, the SECP team underscored the pivotal role of the stock exchange in capital formation, financial inclusion, and investment diversification. Participants were thoroughly briefed on the intricacies of trading, clearing, settlement, and custodial functions within the PSX. The discussion extended to include the National Clearing Company and the Central Depository Company of Pakistan Limited, collectively known as Capital Market Infrastructure Institutions (CMIIs).

A key emphasis was placed on the digital online account opening process, with a specific focus on the convenience provided by the newly introduced Centralized Gateway Portal (CGP) for retail investors. This portal streamlines account opening across various financial intermediaries, including brokers, asset management companies, and insurance companies, by consolidating required documents and details within the CGP.

The workshop also delved into market surveillance, shedding light on SECP's role in monitoring and preventing market abuse. Participants were educated on different types of market misconduct, including insider trading and market manipulation. The SECP and PSX's arsenal of surveillance tools were presented, with case studies aiding participants in developing a nuanced understanding of market abuses.

Addressing systemic risk, the workshop explored various risk indicators such as liquidity, settlement-to-trade ratio, broker exposure, and leverage. These indicators were elucidated as early warning signals crucial for identifying and addressing potential market disruptions.

The informative presentations concluded with an engaging question and answer session, where participants actively contributed to the dialogue. It was collectively acknowledged that regular communication between regulators and the media is a commendable practice, fostering more effective regulation and responsible reporting. This collaboration is anticipated to strengthen the symbiotic relationship between both entities.