Ctg market watchers back derivatives
Wednesday, 1 August 2007
The capital market watchers of Chittagong said the introduction of derivatives would help increase liquidity flow in the stock market, reports bdnews24.com.
Derivatives, a financial instrument, will also help cut the investors' risks, and create a new investment opportunity, the speakers at a workshop on "Derivatives and Book Building" said in the port-city Monday.
"The introduction of derivatives will push the liquidity of the equity market. But awareness among the investors, journalists and professionals is also essential," the daily Azadi Editor Abdul Malek told the workshop.
A derivate is a financial contract whose value is based on, or "derived" from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index.
Referring to India, Malek said, the total volume of trade in derivatives is much higher than equity products on the National Stock Exchange of India.
The Chittagong Stock Exchange (CSE), organiser of the programme, submitted its proposal for derivatives trade to the authorities, the CSE said in a statement.
Malek said the desire to achieve sustained development would be a far cry without a strong, predictable and accountable capital market.
"We are trying to create a friendly environment through diverse products. We are very much optimistic that our capital market will cope with derivatives very soon," CSE Vice-President Nasiruddin Ahmed Chowdhury said.
Derivatives, a financial instrument, will also help cut the investors' risks, and create a new investment opportunity, the speakers at a workshop on "Derivatives and Book Building" said in the port-city Monday.
"The introduction of derivatives will push the liquidity of the equity market. But awareness among the investors, journalists and professionals is also essential," the daily Azadi Editor Abdul Malek told the workshop.
A derivate is a financial contract whose value is based on, or "derived" from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index.
Referring to India, Malek said, the total volume of trade in derivatives is much higher than equity products on the National Stock Exchange of India.
The Chittagong Stock Exchange (CSE), organiser of the programme, submitted its proposal for derivatives trade to the authorities, the CSE said in a statement.
Malek said the desire to achieve sustained development would be a far cry without a strong, predictable and accountable capital market.
"We are trying to create a friendly environment through diverse products. We are very much optimistic that our capital market will cope with derivatives very soon," CSE Vice-President Nasiruddin Ahmed Chowdhury said.