SBP launches first E-Bond Trading Platform
Wednesday, 13 January 2010
KARACHI, Jan 12 (Business Recorder): The State Bank of Pakistan (SBP) Monday launched the first Electronic Bond Trading Platform (E-Bond) for trading of government securities to develop a secondary debt market. In the first phase, government securities, including Government of Pakistan Ijara Sukuk, Market Treasury Bills and Pakistan Investment Bond would be traded at E-Bond platform through 10 primary dealers.
In the second and third phases non-primary dealers, asset management companies, insurance companies and provident fund management companies, which require high rate of interest, would be encouraged to trade in the newly establish E-Bond Market, sources said.
However, every person or company, who want to trade in the government securities, would be required to open an 'Investor Portfolio Security Account' in the bank.
Addressing the launching ceremony, Asad Qureshi, Executive Director, Financial Markets & Reserve Management, State Bank of Pakistan, said that the primary reason for introducing the Electronic Trading Platform in the fixed income market was to enhance efficiency. Presently, there is lack of real-time informati on source for fixed income instruments in the country of the price and volume trends in the OTC market.
The platform is not just a trading platform; it will also serve as a central database for all fixed income activity in the country, resulting in much improved pre-trade price discovery, he added.
"Additionally, SBP would also source & disseminate information from this platform pertaining to Fixed Income Market activity vis-à-vis traded prices & volumes on its website at each end-of-day for wider investor awareness and facilitate in their investment decisions", Qureshi said.
In the second and third phases non-primary dealers, asset management companies, insurance companies and provident fund management companies, which require high rate of interest, would be encouraged to trade in the newly establish E-Bond Market, sources said.
However, every person or company, who want to trade in the government securities, would be required to open an 'Investor Portfolio Security Account' in the bank.
Addressing the launching ceremony, Asad Qureshi, Executive Director, Financial Markets & Reserve Management, State Bank of Pakistan, said that the primary reason for introducing the Electronic Trading Platform in the fixed income market was to enhance efficiency. Presently, there is lack of real-time informati on source for fixed income instruments in the country of the price and volume trends in the OTC market.
The platform is not just a trading platform; it will also serve as a central database for all fixed income activity in the country, resulting in much improved pre-trade price discovery, he added.
"Additionally, SBP would also source & disseminate information from this platform pertaining to Fixed Income Market activity vis-à-vis traded prices & volumes on its website at each end-of-day for wider investor awareness and facilitate in their investment decisions", Qureshi said.