The Bangladesh Securities and Exchange Commission has approved 15 minutes as pre-opening session and 10 minutes as post-closing session on the Dhaka Stock Exchange.
The BSEC on October 20 approved a proposal put forward by the DSE in this regard on August 20 this year.
BSEC in the approval letter said, ‘The commission has allowed its consent to introduce pre-opening session, opening session, closing session and post-closing session of the DSE subject to intimation to the commission regarding the completion of the user’s accepted test (UAT) and market awareness among the related stakeholders.’
DSE officials said that the bourse was working on the issue and the system could be implemented from mid-November.
Most of the stock exchanges around the world have pre-opening session and post-closing session, they said.
The Chittagong Stock Exchange has already had pre-opening and post-closing sessions.
The duration of pre-opening session would be 15 minutes before trading for a day begins and that of post-closing session would be 10 minutes after the session ends.
The pre-opening session would be between 9.45am and 10.00am while the post-closing period would be between 2.30pm and 2.40pm.
A pre-opening session would reduce the load on the system in the initial minutes, DSE officials said.
Stockbrokers would place orders in the pre-opening session, and if matched, these buying and sales orders would be executed immediately after trading starts.
The opening price of company’s shares can be changed due to the execution of buying and sales order in the pre-opening session. The price at which most of the shares would be executed would be the opening price for the company’s shares. Currently, trading of company starts session at the closing price of the last trading session.
However, circuit-breaker would be in accordance with the closing price in the last trading session.
During the post-closing session, investors are allowed to buy or sell stocks in this session at the day’s closing prices.