Chattogram Bureau :
Chattogram Stock Exchange (CSE) has secured the regulatory nod to establish the first-ever commodity exchange in the country. Responding to the port-city bourse’s application on 17 August, the Bangladesh Securities and Exchange Commission (BSEC) accorded its approval on Thursday.The market regulator said to establish and operate a commodity exchange, the CSEmust ensure the right infrastructure facilities and capacities.The CSE will also have to take quality assurance measures for commodities to be traded there.It will also need registered warehouse facilities for storing and transferring commodities.
At the same time, it will have to set up a regulatory body for the activities.The exchange will arrange awareness programmes for the market participants in this regard, said the BSEC.Appropriate pricing and control measures to ensure consumer rights will be needed.CSE will also be responsible for collecting data on commodities for assessment and management of overall risks.
After advancing in these regards, the exchange will have to submit institutional and structural proposals for the formation of its commodity exchange, the BSEC said in its approval letter. Commodities in Bangladesh are being bought and sold in a traditional unstructured way involving thousands of traders, growers and users across the country.Chattogram, being the port city, is the largest commodity hub of the country both in terms of imports and exports. Meanwhile, a vast range of agro commodities is being traded across the country mainly for local consumption.
The proposed commodity exchange can bring ease in buying and selling of the commodities concerned and provide hassle-free solutions to the buyers and sellers alongside offering a much efficient price discovery mechanism, said the CSE officials.The bourse would start its moves to establish its commodity exchange sooner and it would consult the successful regional commodity exchanges to learn from their experiences, said a senior CSE official.He, however, could not project any timeline for the start of trading in the proposed exchange.
Alongside the common global commodities including gold, silver, industrial metals, the exchange has a scope of including rice, jute, tea, potatoes, mangoes and many other agro commodities that grow in plenty in the fertile land of Bangladesh, said the CSE official.
