On Sep. 29, BNG SEC updated on trading of government securities.
BNG SEC issued an order on trading of government securities at the stock exchanges.
In the interest of investors and for development of securities market, certain directions have been issued to the stock exchanges, depositories and other capital market intermediaries with regard to smooth transactions and settlement of the securities.
Directions cover role of intermediaries, registration, listing, delisting, account opening, transfer, trading, connectivity with BNG CB, and parameters of G-Sec trading.
Clearing and settlement, and payment of coupon and principal, secondary market fees.
Oct. 2022 BNG CB
On Oct. 6, 2022, BNG CB updated on trial launch of government securities trading.
G-Sec trading on trading platforms of stock exchanges starts experimentally Oct. 10.
Financial Market Infrastructure (FMI) will be used as a gateway for information
BNG CB informed banks and FIs to provide necessary assistance to the investors.
Jan. 2023 BNG CB Two Way Price Quote
On Jan. 17, 2023, BNG CB issued circular on the selection of benchmark securities and two-way price quoting for the market development of government securities.
BNG CB also amended issuance and re-issuance of government treasury bonds rules.
The existing shut period is revised for domestic and foreign treasury bond trading.
Six categories have been outlined based on the remaining maturity of different bonds.
The previous BNG CB circular letter DMD 8/2021 shall be repealed, see #90768.
Other instructions in BNG CB DMD circular letter 6/2020 shall remain unchanged.
This rule takes effect immediately.
Jun. 2023 BNG CB Guidelines
On Jun. 6, 2023, BNG CB issuedGuidelines on the secondary trading of government securities, 2023, to promote expansion and increased activity of secondary market.
Aim to ensure proper execution of government securities transactions through stock exchanges, cover rules, policies, methods, securities and fund settlement procedures.
Also responsibilities of parties involved in transactions, resolution process for transaction-related disputes, incorporating mandatory instructions for parties involved.
The guidelines are effective immediately.
In Jun. 2023, BNG SEC issued directive on auction of treasury bonds, see #177104.
Nov. 2023 BNG CB Remaining Maturity
On Nov. 1, 2023, BNG CB issued circular on the benchmarking of government securities, specifically regarding two-way price quoting and remaining maturity.
A total of 30 treasury bonds were selected as benchmarks; five from each category were selected based on the remaining maturity of various term treasury bonds.
Circular letter DMD 01/2023 dated Jan. 17, 2023, shall be deemed cancelled.
All other instructions shall remain unchanged.
Document dated Nov. 1, 2023, received from BNG CB Nov. 2, summarized on Nov. 7.
Jun. 2024 BNG CB Online System Launched
On Jun. 2, 2024, BNG CB issued instructions regarding introduction of online system for auction, repo and secondary market transactions of government bills and bonds.
A new system called Financial Market Infrastructure (FM!) has been launched.
Banks and FIs shall use the new system to align with international standards.
Circular is effective immediately on Jun. 2, 2024.
Oct. 2024 BNG CB Guidelines
On Oct. 31, 2024, BNG CB issued circular to MD/CEO of all primary dealers operating in Bangladesh, which contains guidelines regarding the circular of Nov. 1, 2023 above.
The guidelines in this circular (of Oct. 31) are given to develop an active secondary bond market; provides list of benchmark securities at annexure A; instructions in relation to quoting; underwriting obligation; and maximum limit of bid-ask spread.
Sets Nov. 30, 2024 as deadline by which to issue 2-way price quote of class securities.
This circular (of Oct. 31) takes effect on Oct. 31, 2024; circular of Nov. 1 is canceled.
