Dhaka, Bangladesh (BBN) – Primary dealers (PDs) will site today (Monday) to discuss the central bank’s proposal on calculation system for valuation of the holding of treasury bonds by them.

“We’ll discuss the proposal at today’s meeting,” a senior member of the Primary Dealers Bangladesh Limited (PDBL) told BBN, adding that the PDBL will submit their opinions within Wednesday.

He also said the proposed calculation system will help to minimize the valuation adjustment loss of the government treasury bonds under mark-to-market calculation system.

Mark-to-market system is a process of calculation to determine the market value or worth of an existing asset.

Under the new calculation, the valuation of treasury bonds, issued between April 2009 and October 2011 and categorized as ‘held for trading (HFT)’ by the PDs, may be re-assessed at an ‘amortized cost’, instead of the existing mark-to-market system.

Currently, four government bonds – 5-year, 10-year, 15-year and 20-year – are being traded in the market.

The central bank earlier selected 15 PDs — 12 banks and three non-banking financial institutions (NBFIs) — to deal with the government-approved securities in the secondary market.

BBN/SSR/AD-16Jan12-8:54 am (BST)