Dhaka Stock Exchange Limited, Bangladesh's premier bourse, marked a significant moment in the nation's capital market history by awarding certificates of enlistment to six Back-Office Software Vendors.
The Certification Ceremony, held at the DSE Tower in Nikunja, witnessed the presence of key executives, including Managing Director Dr. ATM Tariquzzaman, CPA, Chief Operating Officer M. Shaifur Rahman Mazumdar, FCA, FCMA, and Chief Regulatory Officer Khairul Bashar Abu Taher Mohammed.
Addressing the gathering, Managing Director Dr. ATM Tariquzzaman, CPA highlighted the need for Good Governance in the capital market. Acknowledging Back-Office software as a trusted source of records, he emphasized the commitment to ensuring accuracy and transparency in their operations.
Chief Operating Officer M. Shaifur Rahman Mazumdar further emphasised the paramount importance of building trust among capital market stakeholders.
The vendor enlistment process, he explained, serves as a catalyst for increasing transparency and accuracy in reports and increasing confidence in the market.
Khairul Bashar Abu Taher Mohammed, the Chief Regulatory Officer of DSE, expressed his concern over transparency and accuracy of the records maintained through the Back-Office Software. He emphasised how relentless and rigorous review process these applications underwent, resulting in the well-deserved issuance of certificates.
The six companies that were awarded the certificates are United Corporate Advisory Services Limited for their software named UBROKER, Orange Solutions Limited for ZAB-ERP, Cygnus Innovation Limited for XBROKER, LeadSoft Bangladesh Limited for CAPITA, LankaBangla Information System Limited for Next Generation Back Office (NGBO), and DataSoft Systems Bangladesh Limited for Smart DS Trading Platform.
Prior to this historic development, Back-Office Software vendors operated without accountability or regulation. In response to this, the Bangladesh Securities and Exchange Commission (BSEC), in a letter dated 27th February 2022, mandated that exchanges take necessary actions for vendor enlistment.
The Directive requires vendors to obtain permission from the exchange before supplying software to any TREC Holder Company, with subsequent notification to the Commission.
Earlier the BSEC instruction, DSE had already integrated a rule into the Dhaka Stock Exchange (Administration of Trading Rights Entitlement Certificate) Regulations, 2020, requiring the vendors to take permission prior to supply Back-Office Software to the TREC Holders.
Afterwards, DSE introduced the "Guidelines on Permission of Back-Office Software Vendors of TREC Holder Companies of DSE" on 6th February, 2022. Following a thorough review and consideration, these guidelines received approval from the BSEC, as per their letter dated 2nd October 2023.
The approval included specific inclusions and changes aimed at enhancing the overall regulatory framework.
The enlistment of these reputable Back-Office Software Vendors marks a pivotal step towards enhanced accountability, transparency, and governance within brokerage firms in the capital market.
