Photo: Collected
The Bangladesh Securities and Exchange Commission (BSEC) will launch derivative products in the stock market by 2025, says its Commissioner Abdul Halim.
He said this while speaking as the chief guest at a workshop titled “Financial Derivatives of Exchange Traded Platform-M”. The workshop was organised by the Dhaka Stock Exchange (DSE).
The two-day workshop was held at BRAC-CDM in Gazipur and ended on Saturday. President of DSE Brokers Association (DBA) President Saiful Islam also spoke in the programme as a special guest.
BSEC Commissioner Halim said, “Our role should change according to the changes in the economy. I am hopeful that derivative products will be launched by 2025. Meanwhile, CCBL (Central Counterparty Bangladesh Limited) will start its operations.”
Derivatives are financial contracts that derive their value from an underlying asset, such as stocks, commodities, currencies, etc.
The workshop was held with the participation of top executives from the stock market regulatory body, CDBL, CCBL, merchant banks, and asset management companies.
Managing Director of DSE ATM Tariquzzaman gave a welcome speech at the beginning of the workshop conducted by Md Samiul Islam, general manager of DSE's Market Development Department.
Tarikuzzaman in his address expressed gratitude to the BSEC for providing an opportunity to organise a very relevant and timely workshop on financial derivatives for product diversification of the capital market of Bangladesh.
He said the DSE was keen to diversify its products. "We are working in unison with BSEC to frame the rules/regulations and make the necessary preparations to launch the derivatives market very soon.”
“Financial sector derivative products are very timely for Bangladesh. Derivative products are highly sophisticated products and an effective tool for risk reduction, which plays a positive role in the economy by providing greater efficiency in capital market liquidity and risk management," said Tarikuzzaman.
He also pointed out that the world's leading stock exchanges had various types of derivatives products. The size of the derivatives market is many times larger than that of the equity market, he said, adding the DSE was working to keep pace with its neighbouring exchanges in terms of product diversification to attract domestic and foreign investors in the country's economic development.
Apart from this, several other legal, technical and infrastructure issues have to be addressed, but most important was the training and discussion being conducted on the day, he said.
Messenger/Fameema
