Chittagong Stock Exchange PLC (CSE) has taken a major step toward launching the country’s first commodity exchange, aiming to diversify the capital market and expand new investment windows. The initiative was discussed at a high-level consultation meeting titled “Discussion on Launching Commodity Exchange in Bangladesh,” held on Thursday at Hotel Sheraton in Dhaka with managing directors and chairmen of top-tier banks in attendance.
CSE’s Founding President Amir Khasru Mahmud Chowdhury said the capital market has yet to reach its full potential, as long-term financing is still burdened on banks that rely on short-term deposits. “The capital market is the natural source of long-term investment, but it has not received the expected response,” he said.
He emphasized that product diversification is essential for sustained economic momentum, adding:
“The sooner new products—including bonds and commodities—are launched, the sooner the economy will be better structured.”
He urged the banking sector to take an active role in building the commodity market, calling it a new investment window that will add value to bank balance sheets. He also highlighted investment interest from expatriate Bangladeshis, saying that new, credible initiatives always attract overseas investors.
According to him, derivatives and commodities markets hold huge untapped potential and can play a significant role in energizing the economy. “Let us all work together to make CSE’s commodity exchange initiative a success in the development of the capital market,” he added.
The event was graced by former CSE President MKM Mohiuddin as chief guest. CSE Managing Director M Saifur Rahman Majumder presented the thematic paper of the discussion.
CSE Chairman AKM Habibur Rahman, Directors Professor Dr. Md Saiful Islam, Dr. Mahmud Hasan, M Zulfikar Hossain, Major (Retd) Emdadul Islam, Mohammed Nasir Uddin Chowdhury, and senior CSE officials were present.
CSE Chairman Habibur Rahman said a commodity exchange introduces a completely new asset class to the capital market system of Bangladesh.
He noted that infrastructural development within the commodity ecosystem is crucial, as a well-structured and well-regulated derivatives market will enable price discovery, hedging opportunities, and new investment flows.
“CSE’s initiative to establish the country’s first commodity exchange is a matter of pride,” he added.
In his welcome address, Major (Retd) Emdadul Islam recalled the pioneering contributions of Amir Khasru to the establishment and modernization of CSE. He described the event as an “awareness meeting,” expressing hope that with collective support, the country’s first commodity exchange can be successfully established.
Chief guest MKM Mohiuddin praised the preparation and determination of the CSE team.
“From today’s presentation and Q&A session, it is clear that CSE has completed all necessary preparations, and their confidence is visible,” he said.
He reminded stakeholders that since commodity exchange is a new concept in Bangladesh, learning and adaptation will be essential. Welcoming CSE’s initiative, he urged banks to come forward as crucial participants, saying:
“A new asset class must be understood, embraced, and supported.”
Dhaka Bank Chairman Abdul Hai Sarkar said that although previous attempts to start a commodity market did not materialize, the current initiative deserves full support.
“We may not understand everything in a day, but once the market starts, implementation and learning will become clearer,” he said, expressing hope that the commodity exchange will significantly contribute to economic development.
Participants and panelists discussed global practices in commodity derivatives exchanges, potential business prospects, governance frameworks, and the economic impact of such platforms.
They stressed the need for transparency, structured regulation, and strong risk-management mechanisms, which they said are vital for the Bangladesh context.
Bankers and other attendees expressed their commitment to participate actively in developing this new asset class, noting that it could become an important regulator and stabilizing force in the economy.
CSE Director Mohammad Nasir Uddin Chowdhury highlighted the strategic role of banks.
“Banks have a critical role not only in supporting their subsidiary stockbrokers but also in expanding and diversifying their business through the commodity exchange,” he said.
