Abdus Salam Sikder, former commissioner of the Bangladesh Securities and Exchange Commission (BSEC), has been nominated as the first chairman of Central Counterparty Bangladesh Ltd (CCBL).
The nomination was made for the next two years in the company's first board meeting on Thursday.
Sources said the board wants qualified managing director and other officials at CCBL. Recruitment notification will be given in newspapers for recruiting the managing director, they added.
Asif Ibrahim, chairman of the Chittagong Stock Exchange, told The Business Standard, "The first board meeting of CCBL was held online in the presence of all members today. Abdus Salam Sikder, former commissioner of the BSEC, was unanimously nominated as the chairman for two years."
"We discussed in details about committees that are required according to the law and about the development of CCBL. I hope this journey will mark a new chapter in the country's stock market," he added.
He also said, "We will move forward with our goal of increasing market capitalisation and GDP ratio establishing a strong market."
The BSEC recently approved the eleven-member board of directors of CCBL, which will settle the trading of equities with reduced risk and time.
The company will also ensure trading anonymity and make settlement operations more efficient. It will remove the settlement problems and complexities of stock exchanges.
Currently, the settlements are done through the Central Depository Bangladesh Ltd (CDBL).
Of the CCBL directors, seven are independent directors and four are shareholder directors.
Sources said there will be no need to close transactions on the day after the record date once the CCBL is established.
The stock exchanges will only operate a trading platform to bring together buyers and sellers.
According to the new rules, 65 percent ownership of the company has been given to the stock exchanges – 45 percent to the DSE and 20 percent to the CSE.
The remaining 35 percent will be owned by the Central Depository Bangladesh Limited (CDBL), various banks and strategic investors.