SGX Partners with TradingScreen for First Asian Electronic Bond Trading Venue

Singapore Exchange (SGX) has selected TradingScreen as the technology provider to set up Asia's first electronic bond trading venue. SGX plans to launch the electronic bond trading platform in mid-2015.

The platform will focus on trading high-yield and investment-grade Asian corporate bonds. Initially the platform will trade in the G3 currencies--the dollar, the euro and the yen. SGX announced last month that it had formed a new subsidiary, SGX Bond Trading (SGX BT) to oversee the platform development.

"Continuing with our tradition of innovation, we were keen to invest in technology that would equip the region with a versatile platform addressing the peculiarities of bond trading within the Asian markets," said Muthukrishnan Ramaswami, president of SGX. "TradingScreen, as our technology platform provider, will help us achieve this and will allow us to adapt to clients' need in the coming years while providing the best trading service for bonds in Asia."

The Asian fixed-income market has shown strong growth recently with issuance in Asia, excluding Japan, hitting $137 billion, the companies said. The rising issuance of corporate bonds has led to increased need for an organized and efficient secondary market. Much like in the U.S. and in other global markets, however, increased regulations and capital requirements are making it harder for dealers and liquidity providers to meet demand.

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Fierce Finance IT - Renee Caruthers - December 02, 2014