CSE fully ready to launch commodity exchange, says MD

The Chittagong Stock Exchange (CSE) is fully prepared to launch a commodity exchange, with preparations across the market ecosystem in their final stage, the bourse’s Managing Director M Shaifur Rahman Mazumdar said yesterday.

A standard commodity exchange will help manage price volatility and could make a significant contribution to Gross Domestic Product, he said in a keynote paper at a seminar on commodity exchange operations, held at the MS Trade Centre in Khatunganj, Chattogram.

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The CSE, in collaboration with the Khatunganj Trade and Industries Association, organised the seminar, according to a press release.

Shaifur stated that neighbouring countries, including India, Pakistan and Myanmar, already have commodity exchanges.

“An effective commodity market is an essential part of Bangladesh’s financial system. It will create new investment opportunities and add a new dimension to the country’s existing financial market,” he said.

The CSE MD said he hoped the Khatunganj Trade and Industries Association, along with its member businesses and institutions, would make the necessary preparations to participate in the new platform and contribute to the economy by joining the upcoming commodity market.

Mohammad Abdus Salam, president of the Khatunganj Trade and Industries Association, said the need for an effective commodity market in Bangladesh is undeniable.

“We hope that a commodity market will significantly reduce many of the risks currently present in the spot market,” he said, adding that the association is interested in working with the CSE on this front.

Collective efforts could help make the new market a reality and turn it into a suitable investment avenue in Bangladesh, he added.

CSE Director Emdadul Islam said commodity markets around the world see significant trading volumes, and that both the capital market and the broader economy would benefit once a commodity market starts operating in Bangladesh.

The CSE has been working for the past three years to establish a commodity exchange. The necessary laws and regulations have been formulated, and the trading platform is ready.

Preparations for market participants are now underway. Islam said the remaining work can be completed quickly with government and regulatory support, allowing the exchange to begin operations soon.