CCBL denies Dhaka Exchange's request to suspend procurement

Central Counterparty Bangladesh Limited (CCBL) has declined the Dhaka Stock Exchange's (DSE) request to suspend procurement activities, stating that the request is legally invalid.

On December 10, the DSE, which holds a 45% stake in CCBL, raised concerns about CCBL’s procurement efforts and called for a suspension.

In its response, CCBL argued that the suspension request was "legally untenable." It emphasized that CCBL is an independent entity, with a majority of its directors (seven out of thirteen) being independent, and their appointments are approved by the securities regulator.

Additionally, other shareholders, who collectively own a 55% stake in CCBL, have not raised any similar concerns regarding procurement.

"You cannot instruct another organization to halt its major operations. Although DSE is a significant shareholder, it is not the controlling shareholder," a senior CCBL official explained.

In an earlier letter, the DSE had expressed concerns that CCBL was not prioritizing the country's best interests by exposing critical technology to external vulnerabilities and being slow in implementing key decisions. It also suggested that CCBL refrain from acquiring new IT facilities for transaction settlement and instead use DSE's existing infrastructure.

CCBL, which was established in 2019 to modernize Bangladesh's capital market infrastructure by introducing derivative products and advanced clearing and settlement systems, rejected these concerns. The DSE criticized CCBL for a lack of communication, pointing out that CCBL had not shared any financial statements with the DSE.

In its reply, CCBL clarified that a delay of 955 days had occurred, of which 535 days were beyond the control of both CCBL and DSE, primarily due to the delay in forming CCBL’s first board. After the board was constituted, a further 302 days were lost due to issues related to DSE.

CCBL also rejected the suggestion to share the same facility for data storage, arguing that it would increase risks—if DSE fails, CCBL would also be at risk.

Regarding the alleged miscommunication, CCBL emphasized that 63 board meetings and numerous committee meetings were held, with DSE-nominated directors attending every one of them, asserting that no meeting took place without their participation.