COLOMBO (EconomyNext) – Sri Lanka’s Colombo Stock Exchange is beginning a push for derivatives and other securities as it get closer to rolling out systems to trade new instruments and reduce risk, officials said.
"We do not think we should wait till the system are in place to start new products," CSE Chairman Vajira Kulatilaka said.
He said the legal, operational and education areas would begin soon, and the CSE’s board has given the go ahead to recruit staff to boost capacity.
A report on implementing a central counterparty system was due shortly, he said.
The CSE will offer to trade derivatives, Real Estate Investment Trusts (REITs), Exchange Traded Funds (ETFs).
CSE Chief Executive Rajiva Bandaranaike told EconomyNext that a capacity building drive for both exchange officials and market participants who wanted to structure new investments will be rolled out with the help of the National Stock Exchange of India.
India has growing derivatives market. The country also has more than one stock exchange, giving competition and variety.