The New Nation - Internet Edition

In a bid to sensitise capital market operators with the products of derivative market, the Chittagong Stock Exchange (CSE) Thursday launched a 5-day certification course on Financial Derivatives for the employees of the Brokerage firms and financial Institutions.

The course has been jointly organised by CSE and National Stock Exchange (NSE) of India which began Thursday at the BRAC Inn at Mohakhali in the city. The Securities and Exchange Commission (SEC) Chairman Faruq Ahmad Siddiqi, inaugurated the certification course as the chief guest.

Ramakrishna Srinivas Lyengar of National Stock Exchange of India, an expert on financial derivatives instruments, which became popular in the bourses of the foreign countries as a risk management tool, will conduct the training course. A total 40 participants are taking part in the course to be concluded on June 9.

Speaking at the inauguration ceremony, CSE President Nasiruddin Ahmed Chowdhury said securities like, shares, bonds and mutual funds are traded in stock markets of Bangladesh. "There are demands for good instruments in the market, but the supplies are limited. As a result, we experience that too many investors running after limited number of securities, leading to an unhealthy competition in the market."

Speaking at the inauguration, SEC chairman said that introduction of such products will help prepare the market operators to brace the new products introduced in the developed markets.

The SEC chairman said these new financial instruments are an increasingly important vehicle for unbundling risks. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it.

A. B. Siddique, Chief Executive Officer of the CSE said the derivative products, which do not exist at all in Bangladesh's stock markets, are the most popular investment instruments for the institutional as well as individual investors in both developed and developing countries such as India and Pakistan.