MCX collaborates with CSE to establish Bangladesh's first Commodity Exchange

Multi Commodity Exchange of India (MCX) today announced that it has signed a consultancy agreement with Chittagong Stock Exchange Limited (CSE), Bangladesh, to collaborate on the establishment of the country's first commodity derivatives platform in Bangladesh.

Under this consultancy agreement, MCX, India's largest commodity derivatives exchange, shall assist and provide consultancy services in the areas of products, clearing and settlement, trading, warehousing, regulatory aspects, etc. The agreement signing-in ceremony was graced by dignitaries in Dhaka and Mumbai.

Bangladesh's economy has been growing rapidly in recent years, supported by an enabling policy environment and several supportive structural changes. A commodity-intensive economy like Bangladesh and its value chain participants including domestic corporates, producers and consumers, can gain immensely from the economic benefits of efficient price risk management mechanism available for various traded commodities which the country produces and consumes.

This occasion is an important milestone in the creation of market infrastructure institutions for the development of Commodity markets in Bangladesh, as the country celebrates its 50th anniversary of independence.

Mr. Asif Ibrahim, Chairman, CSE said, "To make the economy more vibrant and well connected, we have started working positively towards the establishment of commodity exchange and have signed an agreement with Multi Commodity Exchange of India Limited (MCX) today. This is a historical event and will be a milestone in the history of Bangladesh's development."

Mr. Md. Ghulam Faruque, MD, CSE said, "Today is a historic day as we have taken the first step towards the creation of Bangladesh's first Commodity derivatives platform. The country has a rich, old and vibrant trading culture in several commodities and with the assistance of MCX, we are confident that we will soon establish a robust platform for price discovery and risk management for commodities in the country."

Mr. P.S. Reddy, MD & CEO, MCX, stated, "This event is of great significance given the close bilateral relations between the two countries, and forges a strong relationship between the two exchanges. We are glad to be part of this journey that is paving the way for the establishment of the country's first commodity derivatives platform in Bangladesh. This platform has great potential to bring immense benefits to the commodities market and its stakeholders in Bangladesh. We wish the team at CSE great success in this endeavour."

The Chittagong Stock Exchange Limited (CSE) is the first automated bourse in Bangladesh and was incorporated on April 1, 1995, as a public limited company by guarantee. CSE launched trading on October 10, 1995, through the cry-out trading system.

In 2013 CSE was converted into a demutualized Exchange and transformed into a public limited company by shares. It is a fast progressing frontier market in South Asia with a transformational business plan to accommodate new products and services.