The Dhaka Stock Exchange (DSE) is planning to launch derivative products in the capital market by January 2028, with regulators stressing that a functional Central Counterparty (CCP) and stronger risk-management infrastructure are prerequisites for the rollout.
The plan was discussed on Monday at an event in DSE Tower, introducing financial derivatives in the country's capital market, where officials outlined the roadmap, challenges and preparatory steps needed before trading can begin.
Commissioner of the Bangladesh Securities and Exchange Commission (BSEC) Nafeez Al Tarik said it will be difficult to launch derivative operations without an effective CCP in place, adding that the capacity of brokers, traders and other market participants must be enhanced alongside the required technological infrastructure.
He noted that international experience shows future markets create opportunities for investors to manage portfolio risks and hedge exposure, with derivatives playing a particularly important role in addressing market liquidity and volatility risks.
Nafeez said the commission, exchanges, Central Counterparty Bangladesh Limited (CCBL) and other market stakeholders must work in a coordinated manner to introduce derivatives, adding that the goal would be achieved by ensuring the necessary rules, infrastructure and capacity within the set timeline.
DSE Managing Director Nuzhat Anwar said the initiative to introduce new financial products on the exchange-traded platform marks a significant step towards developing the country's capital market.
She expressed gratitude to the BSEC for its cooperation and guidance in implementing the initiative, saying a specific roadmap and timeline have been set jointly by the DSE and the commission, and the initiative will move forward in phases based on stakeholders' feedback.
Nuzhat added that detailed workshops and awareness programmes on the matter will be organised in the future.
BSEC Executive Director Abul Kalam said financial derivatives, particularly index derivatives settled in cash, can be introduced relatively easily, but their successful implementation requires a robust regulatory, technological, clearing, settlement and risk-management framework.
He said the existing Exchange Derivatives Rules will be updated to formulate the necessary regulatory framework.
Alongside this, a suitable trading platform, CCP, real-time margining, position monitoring and mark-to-market systems will be put in place. Progress on preparations will be monitored regularly against a set action plan and timeline, he said, adding that the derivatives market launch will be expedited to increase the depth and diversity of the capital market.
General Manager of the Market Development Division Saied Mahmud Zubayer said the DSE is planning to launch derivatives products in January 2028 to introduce modern financial instruments and deepen the market, a plan that has been approved by the BSEC.
He said the DSE has prepared a strategy and action plan covering the regulatory framework, technological infrastructure and stakeholder readiness required for the launch, and has submitted it to the BSEC, with preparations progressing with the commission's cooperation.
In the first phase, DSE plans to introduce its own index-based Stock Index Futures, followed by Single Stock Deliverable Futures, with an Options Market planned for the long term.
The programme also aimed to raise awareness among market participants about derivatives products while gathering stakeholders' opinions on the potential, challenges and preparations needed for introducing such instruments.