Gold, agri goods to be traded first

Some agricultural and gold products would be traded in the first phase on the the country's first ever commodity exchange to be launched this year, Asif Ibrahim, chairman of the Chittagong Stock Exchange (CSE), said yesterday.

To identify the right products for the market, the CSE will appoint Multi Commodity Exchange (MCX) of India as a consultant today.

"As no local firm has technical know-how or practical knowledge on the commodity exchange, the CSE is appointing MCX to this end," he added.

Ibrahim was speaking at an online event organised to brief the media about the contract signing. The CSE chairman said they plan to launch the commodity exchange with two or three assets, including gold and agricultural products.

A commodities exchange is a legal entity that determines and enforces rules and procedures for trading standardised commodity contracts and related investment products.

However, traders rarely deliver any physical commodities through a commodities exchange.

After launching the commodity exchange, the prices of traded products would be stable and adjusted with the international market, Ibrahim said.

The MCX will work on framing bylaws and regulations based on generic regulatory compliance and international best practices.

Besides, it will also work to launch Bangladesh's first-ever commodity exchange, or futures market.

"We are hopeful to launch the exchange within this year," he added.

An organised commodity market is the need of hour in the country as it would play a key role in price discovery and the development of an efficient commodity ecosystem, said Md Faisal Huda, deputy manager of the CSE product development committee.

"As MCX has a lot experience, it would be the best fit for us," he added.

Md Ghulam Faruque, managing director of the CSE, was also present at the event.