Primary dealers to seek separate platform at DSE for govt securities
Thursday, 8 November 2007
FE Report
Primary dealers (PDs) will make a proposal to the central bank to take an initiative for setting up a separate platform at the Dhaka Stock Exchange (DSE) for trading in only government-approved securities to bring dynamism in the secondary bond market.
They will also make a proposal to boost the function of the existing 'delivery versus payment' (DVP) system for facilitating transactions of the government securities in the secondary market.
The PDs will make the proposals at a meeting scheduled to be held in the conference hall of the Bangladesh Bank (BB) today (Thursday), sources concerned said.
The central bank has called the meeting to discuss re-issuance of government bonds to assist the PDs and strengthen the DVP system.
The visiting consultant of the International Monetary Fund (IMF), T Rabi Sankar, who is also Deputy General Manager of the Reserve Bank of India (RBI), the central bank of India, will present a keynote paper at the meeting.
"We have arranged the meeting to get ideas about re-issuance of government bonds," a BB senior official told the FE Wednesday.
He also said the meeting will also discuss the DVP system, which was introduced by the central bank earlier to gear up the settlement process of government securities in the secondary market.
Under the existing settlement system, the central bank only transfers the securities to the buyers from the seller's accounts on a manual basis after confirmation of a deal.
The PDs may also make a proposal to develop a system involving a third party in the settlement process to minimise the financial risks of their investment.
In India, the Clearing Corporation of India Limited (CCIL) is playing the third party role to make settlement of the government-approved securities.
"We want a third party involvement for settlement of the government-approved securities to minimise the financial risks," a senior treasury official of a private commercial bank, who is also responsible for the PD job, told the FE.
He also said the PDs have already made a proposal to the DSE to take measures for setting up a separate work station under its existing operating system for trading in only government bonds.
On Thursday last, a special meeting on development of the country's secondary bond market also proposed setting up a separate platform at the DSE for trading in only government securities.
Primary dealers (PDs) will make a proposal to the central bank to take an initiative for setting up a separate platform at the Dhaka Stock Exchange (DSE) for trading in only government-approved securities to bring dynamism in the secondary bond market.
They will also make a proposal to boost the function of the existing 'delivery versus payment' (DVP) system for facilitating transactions of the government securities in the secondary market.
The PDs will make the proposals at a meeting scheduled to be held in the conference hall of the Bangladesh Bank (BB) today (Thursday), sources concerned said.
The central bank has called the meeting to discuss re-issuance of government bonds to assist the PDs and strengthen the DVP system.
The visiting consultant of the International Monetary Fund (IMF), T Rabi Sankar, who is also Deputy General Manager of the Reserve Bank of India (RBI), the central bank of India, will present a keynote paper at the meeting.
"We have arranged the meeting to get ideas about re-issuance of government bonds," a BB senior official told the FE Wednesday.
He also said the meeting will also discuss the DVP system, which was introduced by the central bank earlier to gear up the settlement process of government securities in the secondary market.
Under the existing settlement system, the central bank only transfers the securities to the buyers from the seller's accounts on a manual basis after confirmation of a deal.
The PDs may also make a proposal to develop a system involving a third party in the settlement process to minimise the financial risks of their investment.
In India, the Clearing Corporation of India Limited (CCIL) is playing the third party role to make settlement of the government-approved securities.
"We want a third party involvement for settlement of the government-approved securities to minimise the financial risks," a senior treasury official of a private commercial bank, who is also responsible for the PD job, told the FE.
He also said the PDs have already made a proposal to the DSE to take measures for setting up a separate work station under its existing operating system for trading in only government bonds.
On Thursday last, a special meeting on development of the country's secondary bond market also proposed setting up a separate platform at the DSE for trading in only government securities.