Dhaka, Bangladesh (BBN) - The central bank of Bangladesh will start online transactions of the government securities from Monday aiming to bring dynamism to the country's secondary securities market, officials said on Saturday
“We want to create a vibrant secondary securities market through introducing the online treading system,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka, adding that both financial institutions and interested individuals are allowed to take part in the securities trading like the stock market.
The government securities will be traded under trade work station (TWS) of the market infrastructure (MI) module, an online platform, according to the new system.
Currently, the government securities are traded under over the counter (OTC) system which will be continued along with the online trading system.
The central bank has already issued a directive mentioning different rules and regulations relating to the trading of the government securities under the TWS system.
Bankers earlier sought liquidity support from the central bank under the over draft (OD) system or intra-day repurchase agreement (repo) auction to facilitate settlement of trading within the shortest possible timeframe under the delivery versus payment (DVP) system.
“The BB is planning to provide liquidity support to the banks and non-banking financial institutions (NBFIs) for making settlement of trading under the DVP system,” the central banker said, adding that the system of providing liquidity support is yet to be finalized.
Currently, three treasury bills (T-bills) are being transacted through auctions to adjust the government borrowing from the banking system.
The T-bills have 91-day, 182-day and 364-day maturity periods.
On the other hand, four government bonds -- 5-year, 10-year, 15-year and 20-year -- are being traded.
BBN/SSR/AD-15Dec12-9:10 pm (BST)
