SGX Bond Trading takes on SGX Bond Pro general counterparty role

It replaced UBS, which was the general counterparty in its 2015 launch.

SGX Bond Trading Pte. Ltd will assume the general counterparty role for SGX Bond Pro from mid-2018, Singapore Exchange (SGX) announced. According to the exchange, this provides “a unique trading and post trade solution for the Asian bond market.”

It added that the role enables the execution of client trades on SGX Bond Pro whilst maintaining full pre and post trade anonymity between trading counterparties. UBS was announced as the general counterparty for SGX Bond Pro in its October 2015 launch.

According to SGX, SGX Bond Pro has grown its participant base and now sees active institutional participants across Singapore, Hong Kong, Taiwan, Philippines, Korea, Malaysia and Indonesia, along with the UK and Switzerland. “SGX continues to increase connectivity and overall market liquidity and, with this principal settlement role, is now better positioned to serve its clients,” it added.

SGX head of equities and fixed income Chew Sutat noted that the initiative to take over the role of General Counterparty is a natural evolution for SGX. It “is testament to the traction we have made in many key markets over the past two years. It is supported by client feedback, and underpinned by our commitment and execution in securities post-trade services,” he added.

Moreover, Mark Leahy has been appointed as head of fixed income. In this role, Leahy will be responsible for executing the strategy for SGX’s bond trading business, SGX Bond Pro, including driving institutional participation. “He will also continue to strengthen SGX’s Asia leadership in bond listings, maintaining the growth momentum with SGX on track to exceed its FY2017 listings record,” the exchange added.

SGX has also appointed Standard Chartered Bank (SC) as the sole settlement agent bank for SGX Bond Trading. It will provide transaction securities services support and ensure a seamless post trade process.

SGX is Asia’s most international debt securities listing venue with more than 80% of the total listed bonds from foreign issuers.