T-Bonds likely to make trading debut Aug 16

DSE trying to sort out complexities

| Updated: August 13, 2022 09:47:17

T-Bonds likely to make trading debut Aug 16

Trading in Treasury Bonds (T-Bonds) is likely to begin on the secondary market on August 16 if the Dhaka Stock Exchange (DSE) can sort out some complexities that arose recently.

As per the instructions of the Bangladesh Securities and Exchange Commission (BSEC), the Dhaka and Chittagong bourses are supposed to start the trading of the T-Bonds on August 16.

"We have detected some complexities during a mock trading of the bonds on August 4. Still, we are trying to launch the trading of the bonds in the secondary market on August 16," said a senior official of the DSE.

If the complexities can be resolved soon, T-Bonds would make their debut in trading markets, he added.

Stakeholders such as Bangladesh Bank (BB), Bangladesh Securities and Exchange Commission (BSEC), both the bourses and the depository authority, CDBL, signed a memorandum of understanding (MoU) on June 12 last to make the debut trading of the T-Bonds in the secondary market.

Asked, another DSE official said the adjustment of opening prices of the T-Bonds is a major problem.

"The opening prices of many T-Bonds will vary due to interests distributed so far. Secondly, the process of transfer of data from the central bank will have to be eased further," he explained.

He also said the DSE will try to comply with the regulatory instructions regarding the debut trading scheduled for August 16.

The DSE officials concerned sat today (Sunday) to discuss the upcoming debut trading of the T-Bonds, he said.

After the debut trading of the T-bonds, general investors can buy and sell T-Bonds through their BO (beneficiary owner's) accounts.

Presently, a total of 222 treasury bonds are listed on the bourses, but general investors cannot trade these bonds as the bourses have no access to the MI (market infrastructure) module introduced by the central bank for the transaction of the T-bonds.

To facilitate the trading of the T-Bond, the central bank's MI module has recently been integrated with the trading software of both the stock exchanges.

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