DMD Circular No. 01: Regarding the live operation of Financial Market Infrastructure (FMI) System related to the management of Government Securities

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Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh | Department of Data Management

DMD Circular No.: 01 Date: 19 Joishtha 1431 02 June 2024

Managing Director / Chief Executive Officer All Scheduled Banks and Financial Institutions operating in Bangladesh (Excluding Shariah-based Banks and Financial Institutions)

Dear Sir,

Regarding the live operation of the Financial Market Infrastructure (FMI) System related to the management of Government Securities (Treasury Bills and Bonds).

Reference is drawn to your attention Circular No. DMD-06/2011 dated 26 October 2011 concerning online transactions related to Government Securities (Treasury Bills and Bonds).

2. Through the aforementioned circular, instructions were provided to launch online arrangements for auctions, repos, and secondary market transactions of Treasury Bills and Bonds via the Market Infrastructure (MI) Module established at Bangladesh Bank.

3. In order to make the auctions of Government Securities more consistent with international standards, improve the management of liquidity facilities provided to banks and financial institutions, make the pricing of securities more market-based, facilitate investment in securities, and develop an effective secondary market for Government Securities in the country, a new system titled Financial Market Infrastructure (FMI), similar to the existing MI Module, has been prepared. The FMI System includes the auction ceremony of Government Securities, repos, Standing Liquidity Facility (Special Repo), Standing Deposit Facility (Reverse Repo), inter-bank repo, liquidity facility provision for PDs, and purchase-sale of securities in the secondary market, along with depository facilities.

4. Consequently, you are hereby instructed to conduct all overall activities related to Government Securities through the FMI System instead of the MI Module. In this context, the instructions contained in Circular No. DMD-06/2011 dated 26 October 2011 are hereby repealed.

5. These instructions shall come into force immediately.

Yours faithfully, (Signature) (Iftikhar Hossain) Director (DMD) Phone: 9530131

Phone: 88-02-9550448, 9554886, IP: 88-02-55865001-6, Fax: 88-02-9530479, www.bb.org.bd