SECP takes measures to enhance liquidity and an effective risk management.

ISLAMABAD -- The Securities and Exchange Commission of Pakistan (SECP) has been undertaking a reform agenda to revitalize the market, with primary focus on measures to enhance liquidity, ease of doing business and address practical difficultiesfaced by market participants. Investors are now allowed to pledge government securities as collateral in lieu of cash or bank guarantee in the futures market,said a pressrelease issued here Saturday. This measure will promote investment in government securities by the investors. Further, up to fifty percent distribution of mark-to-market profit has been permitted in the deliverable futures market which will enhance liquidity in the market. To curtail settlement risk in the deliverable futures market a close-out mechanism has been introduced which provides the manner in which positions of a defaulting market...