Full automation of interbank money market from 1 Dec 

The Bangladesh Bank is going to implement the Electronic Dealing System for Interbank Money Market (EDSMoney), an automated trading platform, for the country's interbank money market from 1 December this year to boost its monitoring and supervision capacity.

The conventional banks and non-banking financial institutions (NBFIs) will be allowed to trade interbank money market products including call money by using the EDSMoney, instead of the existing over-the-counter (OTC) system from 1 December, the central bank said in a circular on Tuesday. 

Since 3 March this year, the banks and NBFI's have been using the EDSMoney platform as part of a test run, the circular added.  

Interbank money market transaction is a recognised system used in liquidity management for banks and NBFIs worldwide. Now the regulator is going to fully implement the live operation of the EDSMoney for a more dynamic, shock-absorbing, and integrated money market.  

"As it is a real-time web-based solution, the EDSMoney will accelerate strict monitoring and supervision of the market and it will enhance the regulator's capacity to ensure transparency over any sort of market manipulation," a senior official of the central bank told The Business Standard on Tuesday.

Earlier, the central bank announced a guideline and roadmap to make the real-time automated platform fully operational, according to the officials.

According to the circular, all transactions (overnight, short notice and term) of the interbank money market's unsecured segment will be accomplished based on the guidelines published on EDSMoney.