The Chittagong Stock Exchange (CSE) wants to introduce Commodity Exchange, an automated system for trading goods in the country, within this year. Initially, the company wants to start a new commodity exchange through gold trading. The information was given at a press conference organized by the company on Monday.
The online press conference was organized on the occasion of signing an agreement with the Indian company Multi Commodity Exchange or MCX to establish a commodity exchange. The agreement will be signed between CSE and MCX on Tuesday.
At the press conference, CSE chairman Asif Ibrahim said that they are moving ahead with a plan to launch a new exchange for selling goods this year. In the beginning, work is going on considering the possibility of trading gold. But in the end, it is up to you to decide which product to start trading on the commodity exchange. MCX will do the verification and selection work.
Speaking to CSE officials, MCX said it would examine the possibility of trading in three products, including gold, crude fuel oil, and cotton. If MCX’s recommendation regarding the sale of three products is found, then the activities of the new exchange will be started with three products. Otherwise, the initial activities will be started only through the trading of gold or gold bars. Later other products will be added step by step.
On October 26 last year, CSE received the initial consent to establish a ‘commodity exchange’ for the first time in the country. The regulator of the capital market, the Bangladesh Securities and Exchange Commission (BSEC) has given its approval. Earlier in August, the CSE board meeting decided to set up a commodity exchange.
According to the Securities and Exchange Ordinance, 1989, any product produced including agricultural products, livestock, fish, forest resources, minerals, and energy products can be traded under the Commodity Exchange. The exchange or organization that will be formed for the purpose of trading or trading these products will be known as Commodity Exchange.