SGX inks MOU with Philippines to develop fixed income access

They're set to explore cross-border and intra-regional clearing.

Singapore Exchange (SGX) and Philippine Dealing System Holdings Corp (PDS) have signed a Memorandum of Understanding (MOU) to develop fixed income access between Singapore and Philippines.

Also included in the MOU is the development of trading platforms to support cross-border fixed income trading. SGX and PDS will also explore the development of cross-border and intra-regional clearing, settlement and depository services for these fixed income markets.

The collaboration will start with the cross-border depository of Republic of the Philippines Government Bonds and Singapore Government Securities between Philippines Depository and Trust Corp (PDTC) and SGX’s Central Depository (CDP). Domestic banks and institutional clients in the respective countries will be able to hold their government bond investments in their respective depositories via a link between PDTC and CDP.

Mr Magnus Bocker, CEO of SGX, said: “With bond markets in Asia growing significantly and strong demand from investors for price transparency and liquidity in this asset class, this collaboration between SGX and PDS is therefore timely and beneficial to investors.”

Mr Vicente B. Castillo, President and CEO of PDS, said: “The joint efforts of SGX and PDS to work towards developing an organised regional fixed income market will not only provide the necessary price transparency, depth of liquidity and a sound settlement process that fosters investor protection but also give local dealers in the ASEAN and Pan-Asian markets an opportunity to play a central role in this endeavour.

Domestic issuers and regional investors will have wider access to funding and an expanded array of investment outlets, respectively.”