Karachi, December 01, 2021 (PPI-OT):As a landmark achievement in Pakistan’s capital market landscape, the first Professional Clearing Member (PCM) by the name of EClear Services Limited (ESL) has been formally inaugurated by adviser to the Prime Minister – Mr. Shaukat Tarin on Nov 26, 2021 at CDC House, Karachi.
Professional Clearing member (PCM), which is also known internationally as General Clearing Member (GCM), is an international best practice of having a “Third Party Clearing” service provider whereby an entity, which is normally not a trading member of the Exchange, provides Clearing and and Custodial services to trading members of the Exchange, who either voluntarily or by virtue of Regulatory framework are not acting as Clearing members of the Clearing house. The new PCM regime has been successfully implemented after the introduction of relevant regulatory framework by SECP and capital market infrastructure entities, leading to the launch of EClear Services Limited (ESL) by all the three SROs in the Capital Market i.e. CDC, PSX and NCCPL with CDC playing the role of the project manager.
Speaking at the occasion Chairman SECP – Mr. Aamir Khan, said, “It is indeed a landmark achievement that EClear has now been launched and operational with more than 25 TO brokers on-board who have shifted their clearing, settlement and custody functions to EClear. This solution will effect true ease of doing business by facilitating TO brokers to simply connect to EClear and start their brokerage business without any system or manpower requirements.”
Speaking at the occasion CEO CDC – Mr. Badiuddin Akber said, “This hi-tech solution will not only bring automation, efficiency and transparency for our existing market players, but also pave the way for new comers in our capital market, both as brokerage Service providers and also as investors. We are confident that this initiative will also expand the investor base of Pakistan Capital market, as it will provide investors with a completely new and digital experience of our capital market while giving them the confidence of asset protection by a reliable and independent third-party service provider.”
The event was also attended by CEO PSX – Mr. Farrukh H. Khan, CEO NCCPL – Mr. Muhammad Lukman, Chairman Pakistan Stock Brokers Association (PSBA) – Aqeel Karim Dhedhi and other representatives of the Capital Market, Mutual Fund industry and Insurance industry who lauded CDC’s efforts in spearheading this initiative and playing its role for the development of the Capital Market.
Speaking at the occasion CEO CDC – Mr. Badiuddin Akber said, “This initiative of “Professional Clearing Member (PCM) is a very important and timely initiative by SECP and very well executed by CDC. It is very important for our Capital market that we introduce such novel concepts which will bring more transparency and efficiency in our market.”
For more information, contact:
Head Office,
Central Depository Company of Pakistan Limited (CDC)
CDC House, 99-B, Block B, S.M.C.H.S.,
Main Shahra-e-Faisal, Karachi – 74400, Pakistan
Tel: +92-21-111-111-500
Fax: +92-21-34326031
Email: info@cdcpak.com
Website: http://cdcpakistan.com/