ISLAMABAD (APP) - The Competition Commission of Pakistan here on Friday issued show cause notice to Karachi Stock Exchange (KSE) for its alleged dominance in the relevant securities market. The KSE has also been directed to appear before the Commission in a public hearing at Karachi on May 5 and place before the Commission all facts and material in support of its contentions and avail the opportunity of being heard. The CCP has served the notice after preliminary inquiry into the complaint lodged by the Islamabad Stock Exchange in November last. The copies of the complaint were sent, besides KSE, to Lahore Stock Exchange (LSE) and Securities and Exchange Commission of Pakistan (SECP) for comments. According to CCP, the behaviour of the KSE appears to be a contraventions of sub-section (2) of Section 3 and clause (b)(e)(g)&(h) of sub-section (3) of Section 3 of the Ordinance requiring initiation of proceedings against the KSE under Section 30 of the Ordinance." The ISE complained that bids and offers of investors entered into trading systems of one exchange can not be matched with those entered at another exchange. As a result, the ISE members have to route many orders of their client (investors) through the members of KSE resulting in large scale trading without being regulated by either of the exchanges. Moreover, investors at ISE have to pay higher out of pocket brokerage costs. The ISE wants a centralised system in the market that should enable access of all market centres to a national pool of liquidity for the best universal execution of the investor's orders, alleging that KSE and its members have maintained the practices which defy all the practices of competition in the relevant market, thus constituting what it called "abuse of dominance position" in terms of section 3 of the ordinance. This dominance position of KSE and its member, ISE said could be do away with by requiring KSE, along with LSE and ISE, to enter into centralisation of all buying and selling interests so that each investors would have level playing field. The ISE wants the commission to initiate proceedings under Section 30 of the Ordinance against the KSE and may require the KSE to discontinue these practices and bring about such changes to ensure centralise all buying and selling interest so that each investor would have the opportunity for the best possible execution of his order.