BSEC approves six commodity brokers

The Bangladesh Securities and Exchange Commission (BSEC) has given in-principle approval to six brokerage firms for registration as commodity derivatives brokers, taking the country’s first commodity derivatives market a step closer to launch.

The decision was made at the commission’s 1,035th emergency meeting on Monday, chaired by BSEC Chairman Masud Khan, according to a press release.

The six firms are Sohel Securities Ltd, Island Securities Ltd, NLI Securities Ltd, B Rich Ltd, PHP Stocks and Securities Ltd, and UCB Stock Brokerage Ltd.

The commission decided to issue letters of intent (LoIs) to the firms based on their applications and recommendations from the Chittagong Stock Exchange (CSE). The approval is preliminary, and the registration certificates have not yet been issued.

Initially, the market is expected to offer cash-settled contracts for gold and silver. Later, commodities such as copper, cotton and crude palm oil may be added.

BSEC Executive Director and spokesperson Md Abul Kalam said preparations for launching the market were progressing, with the registration process underway for eligible brokers.

The market is intended to help importers, exporters, producers and businesses manage price risks, rather than serve solely as a platform for profit from price fluctuations.

An initiative launched in 2007 received final registration in 2024. The CSE has since been developing the necessary technological infrastructure and risk management systems to facilitate the market’s launch.

-AJM