The Bangladesh Securities and Exchange Commission (BSEC) has authorised the country's two stock exchanges to independently determine and implement market control parameters, including circuit-breaker limits.
The decision recognises that both the Dhaka Stock Exchange and the Chittagong Stock Exchange possess the legal authority under their respective regulations to manage these critical market stability mechanisms.
This shift moves the operational responsibility for halting trading during extreme volatility from the central regulator to the exchange operators themselves.
Market participants will now look to the exchanges for specific thresholds and implementation protocols.
The move aligns with broader trends in emerging markets where regulators delegate operational risk management to exchanges to improve responsiveness.
Investors should monitor how the exchanges define their new parameters, as this could impact trading liquidity and volatility management strategies in Bangladesh's equity markets.