SBP introduces new interface under PRISM+ system

June 12, 2025 (MLN): As part of implementing the PRISM+ System, the State Bank of Pakistan (SBP) has introduced a modernized interface to enhance auction and market operation efficiency. Several procedural changes have followed.

All auctions of Government Securities, including Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), along with their buyback auctions, will now be conducted through the PRISM+ platform, as per the press release issued today.

Additionally, conventional Open Market Operations (OMOs), including injections and mop-ups, will also be executed through PRISM+.

However, Shariah-compliant OMOs and Bai Muajjal transactions will continue under the existing mechanism.

For conventional OMOs conducted via PRISM+, eligible institutions are required to submit bids directly on the platform.

Each bid must be tagged with one or more government securities. The face value of the bid will correspond to the face value of the tagged or offered government securities.

PRISM+ will calculate the realized value of these securities based on the applicable revaluation rates, prices, and haircuts.

In instances where multiple securities are tagged under pro-rata conditions, the securities with the shortest remaining maturity will be prioritized for allocation.

Interest Rate Corridor facilities for conventional Reverse Repo (Ceiling) and Repo (Floor) will now be available on the new TMON/X platform.

Shariah-compliant corridor facilities will remain subject to the existing procedures.

The PRISM+ system also introduces a platform for secondary market outright and repo-based trading of government securities.

All securities held in SBP custody will be accessible for trading through this system.

Furthermore, PRISM+ supports when-issued trading of PIB-Fixed coupon bonds prior to auctions.

All participants are encouraged to utilize this secondary market trading feature offered by PRISM+.

Auction and OMO announcements and results will be displayed on Bloomberg and Refinitiv, in addition to PRISM+.

Participants will continue to send Auction, OMO, and Corridor deal confirmation letters to the SBPBSC-Karachi Office via the existing DAP mechanism.

The timings for SBP liquidity facilities will be aligned with the operational timings of PRISM+ as announced periodically.

The aforementioned changes will come into effect from June 16, 2025, while all other instructions will remain unchanged.

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