The DSE Brokers Association of Bangladesh has requested the Chittagong Stock Exchange to withdraw the decision of shifting the opening time and keep the existing schedule intact.
The CSE recently announced a new trading schedule, shifting the opening time from 10:00am to 9:30am, starting January 26, 2025, according to a press release issued by the DBA.
In a formal letter to the CSE board of directors and management authority, the DBA expressed concerns over the implications of the new schedule.
They stated that having different trading hours for multiple stock exchanges within the same country and time zone was both unprecedented and impractical.
This change could create confusion and disrupt the harmony in capital market operations, according to the DBA.
The DBA noted that same securities are traded on both the Dhaka and Chattogram stock exchanges, with synchronised trading hours allowing investors to make informed decisions based on comparative analysis.
The new schedule would disrupt this flow, impacting the ability of investors to execute trades competitively across both exchanges, the DBA said in the press release.
Additionally, the DBA raised concerns over the impact on price discovery.
They pointed out that CSE had a trading volume approximately 5 per cent higher than the Dhaka Stock Exchanges. A lower participation rate during the earlier trading hours, caused by the schedule change, could result in distorted price discovery and negatively affect trading activities.
The dual membership of many brokerage houses on both the CSE and DSE was also highlighted as a challenge under the new schedule.
The DBA feared that separate trading times would complicate operations, create chaos in trading houses and diminish investor confidence, further destabilising the market.
The association also stressed the importance of maintaining stability on the capital market, particularly during the current prolonged market recession.
Investor confidence has already been significantly impacted and the new trading schedule could worsen the situation, leading to further losses for market participants, the DBA said.
The DBA has urged the CSE board and the Bangladesh Securities and Exchange Commission to reconsider and withdraw the decision.
They emphasised that keeping the existing 10:00am opening time is crucial for ensuring smooth operations, preserving market integrity and maintaining investor trust.