The Dhaka Stock Exchange has planned to launch a one-stop data exchange solution agency styled as Financial Data Exchange Platform for the regulators, stock exchanges and other core market institutions including brokerage houses, commercial banks, asset management companies and market intermediaries.
The decision came following a proposal by a Chinese consortium comprising the Shenzhen Stock Exchange and the Shanghai Stock Exchange, DSE’s strategic partners, the bourse’s officials said.
They said that the FDEP was a software system that would provide a secure, reliable and fast channel for trading, flow of funds and information about various types of financial institution in Bangladesh, DSE officials added.
The officials also said that the FDEP would provide a highly efficient, stable and low-cost capital market communications infrastructure to connect the DSE, market regulator Bangladesh Securities and Exchange Commission, the Central Depository of Bangladesh, the Central Counter Party and other core market institutions including brokerage houses, commercial banks, asset management companies and market intermediaries.
Whenever anyone would need to be sent any quick message or file, it could be possible through the FDEP communication system, they said.
DSE managing director KAM Majedur Rahman told New Age that the bourse was assessing to launch the FDEP system as per the proposal from the Chinese consortium for technological development in the DSE.
The system will work like the Bangladesh Bank’s SWIFT (Society for Worldwide Interbank Financial Telecommunication) system, he said.
Its main function would be safe and efficient exchange of messages among the users of the access system, including sending and receiving messages, transmission of load balancing and reliable transmission, said Majedur.
Market participants engaged in all types of business can benefit from this robust and centralised communications networks, he said.
The DSE will also be able to develop value-added services based on the FDEP to diversify its sources of revenue, according to the DSE MD.
The system is expected to facilitate market connectivity between Bangladesh and China, linking up the financial institutions in the two countries to forge a cross-border financial community, he went on.
The FDEP would not only be used to support the various types of on-site services carried out between exchanges and members, but also for off-site businesses developed by financial institutions.
The Shenzhen Stock Exchange will provide the DSE with a 10-year right to use of the FDEP suite of software including e-mail, telephone-based support services as per its technological support.
The Chinese consortium of the Shenzhen and Shanghai stock exchanges on September 4 joined the DSE as its strategic shareholder by purchasing 25 per cent shares of the Bangladesh’s premier bourse for Tk 947 crores.
The consortium offered technical assistance to the DSE worth over $37 million.
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