SGX launches first over-the-counter bond trading platform for Asian bonds

To address traders' liquidity woes.

Singapore Exchange has launched Bond Pro, the first Over-The-Counter (OTC) trading venue dedicated to Asian bonds.

Bond Pro was developed in a bid to address the liquidity challenge that bond traders face due to the popularity of small trade sizes.

SGX Bond Pro has features that re-aggregate liquidity, provide enhanced protections for institutional investors and encourage larger trade sizes, the local bourse said in a statement.

It also connects buyers and sellers of Asian bonds and provides them with multiple trading protocols which were developed in consultation with the industry to facilitate how participants, including accredited investors such as global asset managers, private and investment banks, want to access liquidity.

“We are committed to providing liquidity solutions across our markets and we look forward to seeing the benefits of this pioneering OTC trading venue in the Asian bond market,” said SGX CEO Loh Boon Chye.

“As the banking industry continues to undergo structural change, liquidity conditions in the overall bond market have deteriorated and an entrant like SGX will most certainly enhance liquidity in the Asian market. The buy-side stands to benefit substantially from this and we plan to work closely with SGX,” said Biswaroop Tapan Barua, Managing Director, and Head of Fixed Income for Wealth Management, Standard Chartered Bank.

SGX Bond Pro was established under SGX’s subsidiary, SGX Bond Trading, a licenced Recognised Market Operator.
 

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