CSE ready to cut short trading settlement time
The Chittagong Stock Exchange wants to curtail the trading settlement period soon by a day to boost markets in line with a regulatory requirement, the chief of the port city bourse said yesterday.
â€œThe CSE wants to implement the new settlement period soon, T+2, after a gazette notification from the regulator,â€ said Al Maruf Khan, president of CSE.
The T+2 system means buyers will receive shares, and sellers will get money two days after a trade is made. The existing trading settlement period is T+3.
Before that, there should be some changes to the Settlement of Stock Exchange Transactions Regulations 1998, Khan said.
The CSE has submitted a draft amendment on the settlement of the regulations for approval.
The stockmarket regulator on October 18, 2011 decided to cut the stock trading settlement period by a day, in an attempt to increase trading efficiency of the bourses.
The SEC also asked the stock exchanges to decide when they would be able to implement the new rules.
Earlier, at a meeting on October 25, 2011, the Dhaka Stock Exchange put the decision on hold by saying it would be implemented after the market situation was stabilised.
The CSE will communicate with the BSEC on Sunday on the issue, said Syed Sajid Hossain, chief executive officer of the port city bourse. â€œWe discussed the issue at our board meeting on February 16.â€
The time reduction of trading settlement period will boost market activities, analysts said.