Regulatory Alerts2024-10-31
Added
DMD Circular No. 03: Selection of Benchmark Government Securities and Two-Way Price Quoting
The Department of Market Development of Bangladesh Bank designates 30 Treasury bonds across six maturity bands as benchmark securities and mandates Primary Dealers to provide two-way quotes on the order-matching platform within 30 minutes of office opening. Quoting obligations are tiered based on quarterly average holdings: dealers with holdings up to 3% must quote at least 120 million BDT daily, while those with holdings above 3% must quote at least 240 million BDT daily. The maximum bid-ask spread for these benchmarks is capped at 0.80%, and dealers lacking tradable bonds in a specific band must rebalance portfolios or secure securities by November 30, 2024. This circular immediately supersedes previous directives from November 2020 and November 2023.