SGX ensures transparency in Singapore government bonds trading

Banks to provide market making and brokers to increase liquidity and facilitate buying and selling of SGS bonds.

Singapore Exchange (SGX) said individual investors can expect transparency in price discovery and competitive trading costs of Singapore government bonds (SGS bonds) when they start trading on SGX from 8 July 2011.

SGX said in its report that market makers will be available to increase liquidity and make it easier for individual investors to buy and sell SGS bonds. The liquidity providers include seven out of 13 Singapore Government Securities (SGS) Primary Dealers, which have committed to provide two-way prices for the 19 SGS bonds traded on SGX. These are DBS, Deutsche Bank, HSBC, OCBC Bank, Standard Chartered Bank, The Royal Bank of Scotland (RBS) and United Overseas Bank Limited.

With the participation of these SGS Primary Dealers, who are specialist intermediaries in the SGS and Singapore Dollar money markets, investors can be assured of competitive and transparent SGS bond prices on SGX.

In addition, majority of the retail brokers, who support trading activities by individual investors, have committed to offer competitive brokerage rates on SGS bonds traded on SGX.

SGX is organizing educational seminars for investors who are interested to know more about how to buy and sell SGS bonds or fixed income securities on the Exchange.

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