DHAKA, Sept 7, 2026 (BSS) - The Dhaka Stock Exchange (DSE) is planning to introduce financial derivatives on its exchange-traded platform by January 2028 as part of efforts to diversify products, deepen the capital market and improve market efficiency.

The disclosure came at an awareness and consultation programme organised by the DSE today at its Training Academy in the city with leading brokerage firms, merchant banks, asset management companies and other stakeholders to discuss the introduction of financial derivatives, said a press release.

Bangladesh Securities and Exchange Commission (BSEC) Commissioner Nafis Al Tarek, CFA, said the commission was positive about introducing derivatives in the country's capital market, but stressed the need to ensure market readiness, adequate infrastructure and effective risk management before launching the products.

"Derivatives can create new opportunities for investment and risk management, but without adequate preparation, they can also expose the market to additional risks," he said.

He said a time-bound roadmap has already been adopted with a target of launching derivatives by 2028.

The preparations include necessary amendments to existing regulations, implementation of a Central Counterparty (CCP) system and strengthening the technological and institutional capacity of the Central Counterparty Bangladesh Limited (CCBL).

"Launching derivatives will be difficult without an effective CCP," Nafis said, adding that the capacity of brokers, traders and other market participants must also be strengthened alongside the development of necessary technological infrastructure.

Referring to international experience, he said future markets provide investors with opportunities to hedge and manage portfolio risks, particularly helping address liquidity and volatility risks.

BSEC Executive Director Md Abul Kalam said financial derivatives, particularly index derivatives, could be introduced relatively easily through cash settlement, but their successful implementation would require strong regulatory, technological, clearing, settlement and risk-management frameworks.

He said the existing Exchange Derivatives Rules would be updated to establish an appropriate regulatory framework. At the same time, a derivatives trading platform, CCP, real-time margining, position monitoring and mark-to-market mechanisms would be put in place.

"The progress of preparations will be monitored regularly in line with the action plan and timeline," he said, adding that the initiative would be implemented swiftly to deepen and diversify the capital market.

DSE Managing Director Nuzhat Anwar said the initiative to introduce new financial products on the exchange-traded platform was an important step towards developing the country's capital market.

She expressed gratitude to the BSEC for its cooperation and guidance in implementing the initiative.

She said the DSE and the commission had jointly prepared a specific roadmap and timeline, and the initiative would be implemented gradually based on feedback from stakeholders.

The DSE would also organise detailed workshops and awareness programmes on derivatives in the future, she added.

DSE Market Development Division General Manager Syed Mahmud Zubayer said the DSE was planning to introduce derivatives products in January 2028 and that the BSEC had approved the plan.

He said the DSE had prepared a strategy and action plan and submitted it to the BSEC to ensure the necessary regulatory framework, technological infrastructure and stakeholder preparedness for launching derivatives.

Under the plan, the DSE initially intends to introduce its own index-based Stock Index Futures, followed by Single Stock Deliverable Futures and, in the longer term, an Options Market.

The consultation programme aimed to raise awareness among market participants about derivatives and gather stakeholder views on the opportunities, challenges and preparations required for introducing such products in Bangladesh.