SBP all set to launch e-bond trading
Sunday, 27 December 2009
KARACHI, Dec 26 (Business Recorder): The State Bank of Pakistan (SBP) is all set to launch first-ever Electronic Bond Trading Platform (e-bond) in January 2010 to develop a secondary market for trading of the government securities.
Sources in the banking sector told the reporter that arrangements for the formal launch of the e-bond are in final stages and it is likely to be launched in the first or second week of January next.
In line with the SBP policy of active involvement of market participants in any development initiative, a committee had been formed comprising representatives from commercial banks as well as the SBP tasked to develop a trading platform in line with the needs of the domestic fixed income market, they added.
"The committee has almost finalised all the arrangements and after carefully evaluating the proposals of vendors, the committee has recommended that Bloomberg better suits the needs of domestic fixed income market," sources said.
In the first phase, three government securities including Government of Pakistan Ijara Sukuk, Market Treasury Bills and Pakistan Investment Bond would be traded at the platform through 10 primary dealers, they added.
While, in the second and third phase non-primary dealers, Asset Management Companies, Insurance Companies and Provident Fund Management Companies, which required high rate of interest, would be encourage to trade in the e-bond market, sources added.
However, every person or company, who want to trade in the government securities would be required to open an 'Investors Portfolio Security Account' in bank.
Sources in the banking sector told the reporter that arrangements for the formal launch of the e-bond are in final stages and it is likely to be launched in the first or second week of January next.
In line with the SBP policy of active involvement of market participants in any development initiative, a committee had been formed comprising representatives from commercial banks as well as the SBP tasked to develop a trading platform in line with the needs of the domestic fixed income market, they added.
"The committee has almost finalised all the arrangements and after carefully evaluating the proposals of vendors, the committee has recommended that Bloomberg better suits the needs of domestic fixed income market," sources said.
In the first phase, three government securities including Government of Pakistan Ijara Sukuk, Market Treasury Bills and Pakistan Investment Bond would be traded at the platform through 10 primary dealers, they added.
While, in the second and third phase non-primary dealers, Asset Management Companies, Insurance Companies and Provident Fund Management Companies, which required high rate of interest, would be encourage to trade in the e-bond market, sources added.
However, every person or company, who want to trade in the government securities would be required to open an 'Investors Portfolio Security Account' in bank.