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CSE to get maiden commodity exchange licence today

March 20, 2024 00:00:00

FE Report

The Chittagong Stock Exchange (CSE) will get the licence of the country's maiden commodity (CX) exchange from the securities regulator today (Wednesday) nearly four months after the publishing of rules.

CSE's Managing Director Shaifur Rahman Mazumdar confirmed this, saying that the bourse would decide the next course of actions on receipt of the licence.

He said trades on the CX are likely to be commenced this year on completion of the relevant processes.

A CX is a legal entity that determines and enforces rules and procedures for trading in standardised commodity contracts and related investment products.

Before getting the licence, the exchange is unable to allocate investments for IT infrastructure, product selection, and market model specification, among others.

The CSE has already selected three IT consultants -- MIT of Sri Lanka, Intellect Design of India and Chella Software of India.

On receiving the licence, the CSE will appoint these IT consultants.

At the same time, the bourse will submit a draft of regulations for the CX to the securities regulator.

In the meantime, product selection and awareness programmes will continue.

The Bangladesh Securities and Exchange Commission (BSEC) approved the CX's rules last year and a gazette notification was issued on it.

The CSE is working to frame regulations based on the rules approved for the CX.

The securities regulator in 2021 gave primary consent to the CSE for establishing a commodity exchange.

With the support of an Indian consultant appointed in 2022, the port city bourse framed rules.

Initial products of the CX will be gold, cotton and crude oil.

As per the rules, the CX will be a subsidiary of the port city bourse. Its paid-up capital will be Tk 4 billion and the board will be comprised of 13 members.

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