LSE to launch SIFC Market soon

It has been learnt that Lahore Stock Exchange Limited shall introduce future product with underlying assets based on KSE-30 Index in Stock index Futures Contracts (SIFC) Market.

An agreement has been signed between LSE and KSE for trading of KSE-30 Index product in Stock Index Future Segment of Derivative Market. On the occasion, Chairman, KSE Board and MDs of three Stock Exchanges were present to ink the agreement on trading of KSE-30 Index at the bourses other than KSE. Mr. Sani-eMehmood Khan, GM, Marketing and Product Development, Karachi Stock Exchange Limited gave a detailed presentation on Modus Operandi of trading of underlying KSE-30 Index to the participants of ceremony.

He said that KSE-30 Index contacts would be issued in two sectors; the Oil & Gas and the Banking. He explained modalities of the new product that would also be traded at other bourses of the country. Speaking on KSE-30 Index, he said that Sector Index Futures offers the opportunities to the investors to gain in specific sectors without buying scrip that constitute the Sector. Elaborating detail of trading of KSE- 30 Index in SIFC Market, he said that Mark-toMarket Losses shall be collected on T+0 basis by the Exchange and Profit shall be distributed on T+1 basis through NCCPL with cash set- tlement at Rs.5 per index point movement. The settlement shall be concluded on maturity without any requirement of delivery. In SIFC market, client level margining at 12.5% shall be required by Brokers to deposit either in cash and/or in bank guarantee. Circuit breaker shall also be applicable in SIFC in case of movement of 7.5% above or below of the previous day closing price.

At the signing off SIFC agreement ceremony, Mr. Aftab Ahmed Ch., CEO/Managing Director of Lahore Stock Exchange Limited stated that Stock Index Future Contracts on tradable benchmark indices are agreement between two parties to buy or sell a standardized value of tradable sector index.