SBP to Conduct Auction of Govt Securities Via PRISM Plus Next Month

The State Bank of Pakistan (SBP) has notified that it will carry out auctions of Government securities, buyback auctions, and open market operations through PRIMS Plus from the current month. According to the circular, all auctions of Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), including their buyback auctions, will be conducted through the PRISM+. Conventional Open Market Operations (Injections and Mop-up) will be conducted through PRISM+. However, Shairah Compliant OMOs as well as Bai Muajjal will continue to be conducted through the existing mechanism. In respect of Conventional OMOs conducted through PRISM+, the following changes in the procedures are being introduced: All eligible institutions will submit bids at PRISM+. They will tag one or more than one government securities with each bid. The face value of the bid will be considered equal to the face value of tagged/offered government securities, the circular stated further. The realized value of the government securities will be calculated by PRISM+ based on applicable revaluation rates, prices, and haircuts. In case of multiple securities tagged with the bid subject to pro-rata, the government securities having the shortest remaining life/maturity will be allocated first toward pro-rata. Conventional Reverse Repo (Ceiling) and Repo (Floor) facilities will be offered through the new TMON/X platform. Shariah-compliant corridor facilities will, however, continue to be conducted as per existing procedure. The PRISM+ also offers a platform for secondary market outright and repo-based trading of government securities. All government securities held in the custody of SBP will be available for trading. The PRISM+ also provides a mechanism for when-issued trading of PIB-Fixed coupon bonds before auctions. All participants are encouraged to utilize the secondary market trading platform offered as part of PRISM+.