Chittagong Stock Exchange (CSE) has announced an extension of its trading hours by 45 minutes with effect from January 26, a decision that has drawn criticism from the DSE Brokers’ Association (DBA).

In a recent notice sent to brokerage houses, CSE said that trading will start at 9:30 am instead of 10:00 am and conclude at 2:35 pm instead of 2:20 pm.

But this adjustment has faced severe opposition from the DBA, which described the move as "highly unconventional and poorly thought out" for a nation functioning under a single time zone.

In a press release issued on Wednesday, the DBA highlighted that both the Dhaka Stock Exchange (DSE) and the CSE facilitate trading of the same securities.

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The synchronisation of trading hours across both exchanges enables investors to evaluate market conditions and execute trades at competitive prices. The DBA argued that the proposed change would create inequity among investors.

Noting that CSE’s trading volume accounts for only about 5% of the national market, the DBA expressed concerns over the limited participation of brokers at CSE, which could disrupt price discovery during early trading hours.

Besides, the DBA warned that separate trading schedules for the two exchanges could lead to operational disruptions, particularly for firms holding dual memberships.

Such a scenario, it said, would foster disorganisation within brokerage houses and adversely impact investor confidence and overall market management.

In its defence, CSE justified the decision as a step towards enhancing liquidity and offering greater flexibility to investors.

Despite the time change at CSE, the DSE has confirmed that its trading hours will remain unchanged.

The decision has triggered a debate within the financial community, raising questions about its potential impact on market dynamics and investor behaviour.