SINGAPORE Exchange (SGX) on Thursday announced the launch of SGX Bond Pro, its over-the-counter (OTC) trading platform for Asian bonds.
The electronic platform is SGX's attempt at improving liquidity for bonds issued by Asian companies in G3 currencies - US dollars, euros and the yen.
While SGX Bond Pro has begun trading Asian corporate bonds in G3 currencies, Asian local currencies will follow, SGX said on Thursday.
"The secondary Asian bond market faces an institutional liquidity challenge as a result of increasing fragmentation and concerns among participants of information leakage and subsequent market impact resulting in a prevalence of small trade sizes," SGX said in a statement.
"SGX Bond Pro aims to address this through features that re-aggregate liquidity, provide enhanced protections for institutional investors and encourage larger trade sizes."
In October, UBS was given the key role of general counterparty for SGX Bond Pro.