March 20, 2007	Tuesday	Safar 30, 1428

KARACHI: March 19: Implementation of the client-level netting regime in the Deliverables Futures Market has been extended for a further period of 30 days, which would now be due with effect from May Deliverables Futures Contracts.

An announcement from the Karachi offices of the Securities and Exchange Commission of Pakistan (SECP), forwarded to the media by the Karachi Stock Exchange late in the evening mentioned that Cash Settled Futures contracts would commence on the scheduled date of April 2, 2007 “with client-level netting, right from the inception.”

According to sources, the announcement came after a marathon meeting between the SECP and the board of directors of the Karachi Stock Exchange (KSE) on Monday.

The meeting was said to have started at 2pm and concluded at 10pm. The announcement coincides with the bloodbath at the KSE which saw the KSE-100 index plunge by 233 points and KSE 30 index by 407 points on Monday.

The announcement released by the SECP-KSE on Monday went on to say: “Please refer to KSE letter dated March 19, 2007, requesting extension in the implementation of client-level netting regime in the Deliverables Futures Market for a further period of 30 days. The client-level netting regime was applicable on Deliverables Futures Contracts from April contracts. The exchange has requested this extension in the light of delayed implementation of the Margining system of Financial Institutions (FIs), which were due to be implemented before the beginning of April Deliverables Futures Contracts”.

And it said: “In light of the above, the Commission hereby grants extension in the implementation of client-level netting, which would now be implemented with effect from May Deliverables Futures Contracts.”

The announcement goes on to state that the cash settled futures contracts would “commence on the scheduled date of April 2 with client-level netting, right from the inception.”