Call to popularise derivative products
Friday, 14 December 2007
FE Report
Chittagong Stock Exchange (CSE) President Nasiruddin Ahmed Chowdhury urged the journalists community to popularise the derivative products among general investors.
"When the bourses will finally launch the product it is necessary for all concerned to understand derivatives product. Without adequate knowledge of derivatives products on the part of general investors it will be impossible for the bourses to implement it," he said while inaugurating a seminar organised by the CSE for local journalists' community at a hotel in the capital.
He said in the present scenario, introduction of such products would increase the confidence of general investors. He expressed the hope that the seminar would help journalists understand derivative products.
He said, "Bangladesh capital market will have a new dimension in the near future when derivatives will be added to the existing equity products. But for this we may need to have some reforms in our existing policies and rule and regulations." In a recent meeting, the CSE received such commitment from the Securities and Exchange Commission (SEC), he said adding the bourse has already submitted a draft 'Regulatory and Operational Framework for Introducing Financial Derivatives' to the SEC for its scrutiny and comments".
He further said these new financial instruments are an increasingly important vehicle for unbundling risks. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it. This unbundling of risk improves the ability of the market to engender a set of products and asset prices that calibrate the value preferences of investors that were not possible before derivative markets were developed. The product and asset price signals enable entrepreneurs to finely allocate real capital facilities to produce those goods and services most valued by investors, a process that has undoubtedly improved national productivity growth and standards of living.
Head of Compliance of CSE Atiquzzaman has made a presentation on the topic. He said derivatives are the essential products for risk management while investing in the stock market, and when there is any derivative on a stock, it increases the liquidity of that stock in the cash market resulting in the overall liquidity in the market.
Chief Executive Officer (CEO) of the CSE AB Siddique said, "this course is the outcome of our series of awareness seminars on familiarising derivatives in our market."
Immediate past president of CSE MKM Mohiuddin, directors Bijan Chakroborty, ASM Sahidullah and A Majed Khan, Member Md Fakhruddin and other officials were also present at the seminar.
Chittagong Stock Exchange (CSE) President Nasiruddin Ahmed Chowdhury urged the journalists community to popularise the derivative products among general investors.
"When the bourses will finally launch the product it is necessary for all concerned to understand derivatives product. Without adequate knowledge of derivatives products on the part of general investors it will be impossible for the bourses to implement it," he said while inaugurating a seminar organised by the CSE for local journalists' community at a hotel in the capital.
He said in the present scenario, introduction of such products would increase the confidence of general investors. He expressed the hope that the seminar would help journalists understand derivative products.
He said, "Bangladesh capital market will have a new dimension in the near future when derivatives will be added to the existing equity products. But for this we may need to have some reforms in our existing policies and rule and regulations." In a recent meeting, the CSE received such commitment from the Securities and Exchange Commission (SEC), he said adding the bourse has already submitted a draft 'Regulatory and Operational Framework for Introducing Financial Derivatives' to the SEC for its scrutiny and comments".
He further said these new financial instruments are an increasingly important vehicle for unbundling risks. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it. This unbundling of risk improves the ability of the market to engender a set of products and asset prices that calibrate the value preferences of investors that were not possible before derivative markets were developed. The product and asset price signals enable entrepreneurs to finely allocate real capital facilities to produce those goods and services most valued by investors, a process that has undoubtedly improved national productivity growth and standards of living.
Head of Compliance of CSE Atiquzzaman has made a presentation on the topic. He said derivatives are the essential products for risk management while investing in the stock market, and when there is any derivative on a stock, it increases the liquidity of that stock in the cash market resulting in the overall liquidity in the market.
Chief Executive Officer (CEO) of the CSE AB Siddique said, "this course is the outcome of our series of awareness seminars on familiarising derivatives in our market."
Immediate past president of CSE MKM Mohiuddin, directors Bijan Chakroborty, ASM Sahidullah and A Majed Khan, Member Md Fakhruddin and other officials were also present at the seminar.