The (LSE) announced today that its electronic bond trading platform, MTS, and the (JSE) have opened South Africa’s first electronic government bonds trading platform.
The new platform, which has gone live today, seeks to enable global access and enhance transparency in the South African government bond market. Powered by MTS, the platform has already attracted nine primary dealers, with the likes of Absa Bank, , HSBC, and signing up as liquidity providers, the statement says.
has been operating electronic fixed income markets for three decades. However, this is the first relationship of its kind in the African sovereign bond markets for the platform. According to the statement, MTS was selected by JSE following a competitive procurement process. In South Africa, JSE will operate and manage the new market. This will be done in accordance with local regulations.
Seven years of hard work pays off
Source: LinkedIn
“This launch of the Bond ETP it also was an important element of South Africa’s commitment to Capital Markets reforms at the G-20 group of nations. The culmination of the intensive efforts of a multitude of stakeholders including our technology provider MTS, our nine Primary Dealers, the World Bank as project consultant, the South African Reserve Bank; and Central Securities Depository Participants (CSDPs) has really paid off and this is a proud moment for our country.”
Source: LinkedIn
“The use of electronic trading platforms has shown notable positive effects in the secondary markets including: improved liquidity through price discovery; reduced transaction costs and greater competition; increased transparency, and; lower trading costs.”
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