Regulatory Alerts2020-11-10
Added · Updated
DMD Circular No. 06: Selection of Benchmark Government Securities and Two-Way Price Quoting
The Department of Market Management of Bangladesh Bank selects 30 benchmark Treasury bonds across six maturity categories and mandates all Primary Dealers to submit two-way price quotes (bid and offer) for at least one bond per category daily via the Market Infrastructure module. Dealers with a quarterly average turnover of 3% or less must quote a minimum of 120 million BDT (split 60/60 million), while those exceeding 3% must quote a minimum of 240 million BDT (split 120/120 million). Maximum bid-offer spreads are capped at 2, 4, 5, 6, 8, and 10 BDT for bonds with remaining maturities of 0-2, 2-5, 5-8, 8-10, 10-15, and 15-20 years, respectively. Primary Dealers lacking tradable bonds in any category must rebalance portfolios or secure securities within two months to ensure compliance.
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