The Dhaka Stock Exchange signed a letter of intent with Kunming Pan Asia Gold Exchange to jointly promote commodity market in Bangladesh and China.
A commodity exchange is an exchange where various commodities and derivatives (financial contract) are traded. DSE president Ahasanul Islam signed the LoI during his visit to China to attend Bangladesh-China-India- Myanmar Economic Corridor Connectivity Forum, held in November 9-11 at Fuzhou.
He also attended some other business events in different Chinese cities, a DSE news release said on Wednesday.
Under the LoI with the Kunming Gold Exchange, authorities of the two stock exchanges will carry out a feasibility study on developing market for trading precious metal like gold and its derivatives in Dhaka and Kunming stock exchanges.
The derivatives will be denominated in Bangladesh taka, Chinese renminbi and US dollars. Currently, there is no commodity market in Bangladesh.
The Bangladesh Securities and Exchange Commission, however, is planning to start formulating the rules for developing and running the commodity exchange.
The regulator already included the definition of the commodity exchange in the Securities and Exchange Act 2012 as a step forward to establish a commodity market, which will help ensure fair and competitive prices of precious metals and other major commodities.
-With New Age input
