3yrs Into Chinese Partnership: DSE yet to look at notable tech advancement
Nearly three years have passed since welcoming a Chinese consortium mainly because a strategic partner, however the Dhaka bourse is but to secure virtually any significant technology transfer from the Shenzhen and Shanghai stock exchanges.
The deal, that your country's premier bourse inked on May 14, 2018, selling 25 % stakes, bore promises of several technological upgradations to transform the Dhaka STOCK MARKET (DSE) into a leading bourse in your community.
The partnership wanted to bring about an electric platform disclosing listed companies' corporate information, simple analytics tools, an interactive question-answer system, and an online complaint portal.
The consortium had also decided to provide a trade-matching engine, surveillance software and extensible business reporting words.
But none of the technological enhancements found the light of day as a result of Dhaka bourse's manpower shortages, the consumption of Mandarin vocabulary in the systems, and the modus operandi being different in Bangladesh.
The Chinese consortium gave its commitment to supply many technologies, plus they were prompt too. Hence, the DSE's duty was to adopt it, explained the bourse's former taking care of director, KAM Majedur Rahman.
Rahman was first the CEO of the bourse when the deal was signed.
A number of the Chinese consortium's proposals bore prospects of taking truly revolutionary adjustments for Bangladesh's capital industry, such as automated operations of the DSE and information disclosure processes, he said.
So, the bourse needs to increase the adoption process, he said, adding that twelve months was lost for the pandemic. The management needs to act fast to effect a result of the applicable technologies.
The consortium provided two answers to the DSE: an information disclosure system and a financial info exchange platform.
The DSE has already developed some top features of the information disclosure system, which is defined to be commissioned, said DSE Chief Technology Officer Md Ziaul Karim.
Initially, 30 businesses were incorporated into the system.
The DSE requested the consortium to modify the financial info exchange platform, reasoning that its features weren't applicable for Bangladesh.
The modification requests intended to allow stock investors to transfer funds to brokerage houses quickly.
"They possess modified it. So, we will carry out our study on it, and it needs to be approved by the financing ministry, the Bangladesh Bank and the BSEC [Bangladesh Securities and Exchange Commission] before being launched," stated Karim.
The partners also wanted to provide a trade-matching engine. Today, the DSE is employing one of Nasdaq, an individual agreement that will expire in December 2024.
"We will take the Chinese matching engine in 2022 and start working it on a trial basis in order that it really is officially worked within 2024," he said.
The surveillance system will also take the same timeframe to come about, said Karim.
The technological offers were free for use for 10 years. In monetary conditions, they would have expense the DSE $37.11 million.
Once the period has ended, the DSE must bear the price. So, a cost-benefit examination can be necessary, he said.
"The products offered were not made for us and not readymade. The technology possesses dialect issues," he added.
"As their situation and needs are not identical to ours, some features as well would have to be changed. To maintain and operate new systems, we need manpower, but the IT department has a shortage of it," Karim described.
"We have the expertise to initiate the brand new technology, where sufficient manpower can be needed," he added.
The DSE was struggling to launch modern technologies, so investors are being deprived, said stock investor Torikul Islam yesterday.
"What we actually got from the strategic spouse is nothing at all," he lamented, near a giant screen at a good brokerage home, Shakil Rizvi Stock.
Simply stockbrokers gained some money selling the DSE's shares, Islam said.
The consortium bought 45 crore, or 25 % of the DSE's shares at Tk 22 each, that the agents got around Tk 947 crore.
The BSEC should ask the bourse to get a your hands on suitable technologies from their website, Islam added.
The DSE introduced a new CNI-DSE Choose Index in 2019 to attract foreign portfolio investments. It had been jointly designed and developed by Shenzhen Securities Facts Enterprise and the DSE as a part of the technological collaboration programs.
The new index has been on display at the Shenzhen STOCK MARKET to help foreign investors are more informed about Bangladesh's currency markets.
