The Dhaka and Chittagong bourses on Tuesday held a meeting and discussed the possibility of setting up a joint clearing corporation for smooth transaction in the stock market and payment for derivative instruments. The meeting was held at the Dhaka Stock Exchange building. DSE president Ahasanul Islam chaired the meeting.Chittagong Stock Exchange president Al Maruf Khan, DSE chief executive officer Swapan Kumar Bala and CSE CEO Syed Sajid Husain were present among others.
A clearing corporation, also known as clearing firm or clearing house, plays a key role in ensuring executed trades are settled within a specified period of time in an efficient manner.
‘DSE and CSE are trying to take a decision on setting up a clearing corporation jointly,’ Al Maruf Khan told New Age.
‘We have met today [Tuesday] and discussed the matter,’ Maruf said.
‘DSE said that they would raise the issue in it board meeting. After the meeting they will inform us about their decision,’ he also said.
A clearing corporation will help the bourses to set up derivatives market.
‘We have taken several attempts to set up a clearing house to settle transactions. The proposal was also sent to the Bangladesh Securities and Exchange Commission for its approval. But the commission is yet no respond,’ a DSE official said.
‘Settling transactions through separate clearing corporations is an international practice. But, the bourses are doing the job as we don’t have any such corporation,’ he said.
The CSE had also proposed that the BSEC set up a national clearing corporation for speedy settlement of transactions.
Finance minister Abul Maal Abdul Muhith in 2010 while replaying a questing about the capital market in the parliament had said that the government had taken steps to set up a ‘clearing corporation’ immediately for speedy and smooth transaction in the stock market.
-With New Age input
