Stockbrokers hail derivatives trading
Three Chief Executive Officers of frontline stock brokering companies
hailed the Securities and Exchange Commission (SEC) for arranging to
launch derivatives in the local market, claiming that it was a very
positive move in the right direction.
This is a new development which will add to the portfolio which has
hitherto been only an equities market, they said. Chairman of the
Colombo Stockbrokers Association and Ceylinco Stockbrokers Director/
General Manager/CEO Sriyan Gurusinghe said this was indeed a decisive
step in the Sri Lankan capital market development where a totally new
product was being introduced.
“We were equity brokers all this time and it is indeed heartening to
move into a new product in the market which will also add value to the
market,” he said.
The SEC has briefed CSBA had been briefed about the Central Clearing
Corporation and brokers were studying it and there is a positive
possibility of attracting a large number of foreign funds into Sri Lanka
with these developments, he added.
Asia Capital CEO Asanga Seneviratne said this was a good move which
was long overdue and which should have been introduced 10 years ago. He
said that another market instrument such as short selling should also be
The addition of new instruments will also enable to make investors
take stock of Colombo as a financial hub and the positive / negative
aspects of the Colombo market.
DFCC Stockbrokers CEO, Ray Abeywardena said this was a long felt need
to diversify the number of instruments available in the market which
will give the much needed confidence among foreign investors and based
on its success, this should be a stepping stone for including other
instruments such as hedging.