Automation of the trading system in Bangladesh started in mid-90’s. The objective was to make capital market more efficient by providing all participants with quicker and more effective means of exchanging information. New products and instruments have been made available as a result of the sophisticated ICT.
As a part of the continuous modernization and increment in capacity of capital market in Bangladesh, Market Authority and relevant stakeholders took different initiatives such as modernization of Stock Exchanges, establishment of Central Securities Depository etc. Bangladesh Securities and Exchange Commission promulgated Clearing & Settlement Rules, 2017 to form a Central Counterparty (CCP) in Bangladesh. Under the said rules, a Company has already been incorporated in the name and style Central Counterparty Bangladesh Limited (CCBL) in January 2019. The shareholding of the company is held by Dhaka Stock Exchange Limited (DSE), Chittagong Stock Exchange Limited(CSE), Central Depository Bangladesh Limited (CDBL), local banks and a strategic investor (to be introduced).
CCBL is planning to implement a state-of-the-art CCP System to manage ever-growing business of the Bangladesh capital market and align its business vision with technological advancement. CCBL has taken initiatives to search for a new, robust, high frequency CCP System with multi asset-class & multi exchange transaction Risk Management, Clearing & Settlement facilities along with integration of different entities like stock exchanges, depositories, clearing members and banks for smooth handshaking with the third party application through Industry Standard and customized API.
- Select and implement a CCP System fully equipped with global standard features covering equity, debt, derivative products, risk management, settlement guarantee fund management, securities lending and borrowing and clearing & settlement modules that will support smooth operation of the capital market and its strategic development programs.
- Facilitate operational efficiencies as well as minimize industry costs for future changes.
- Accommodate future business expansions through internationalizing current settlement methodologies, providing settlement facilities to meet growing demands of market participants, offering various types of asset classes, attracting strategic partners or new comers to access Bangladesh capital market conveniently.
- Attract both local and international investors by establishing a fair, liquid and efficient CCP in the region.
- Use industry standard interfaces to promote accessibility for clearing members, exchanges, depositories and others.
- Enable flexible configuration through parameters-based settings to enable CCBL to easily configure trading and depository system changes and facilitate cost effective implementation and much faster time-to-market for new products and services.
- Use a high-performance, ultra-low latency platform that will promote CCBL to be an attractive trade clearing & settlement venue for local and global trading participants.
- Regulate the dealings of members through pre-trade/post-trade risk management controls.
- Establishment of effective cooperation and coordination with the associations of Clearing Members, Depositories and Stock Exchanges.
- Obtain and make available to participants’ information and facilities likely to be useful to themselves or to their clients.
- Ensure best practices, features, product scalability, product diversity, ease of inclusion of new market / segment / product, future trends etc.
- Obtain system by ensuring latest technologies, low latency, high throughput, scalability, reliability, ACID compatibility, security, user-friendliness etc.
- Select highly secured, scalable and customizable technology solution, flexible architecture and system design to incorporate frequently changing business rules.
- Ensure protection of interests and benefits by incorporating adequate legal provisions in Rules, Regulations and Agreements.
- Ensure services to its clients having recognition from IOSCO under PFMI, ESMA under EMIR and/or MiFID.
- Protect CCBL from all sorts of cyber threats.