SGX unit, Trumid and Hillhouse in JV to launch Asian bond trading platform

THE Singapore Exchange (SGX) and its wholly owned subsidiary, Asian Gateway Investments (AGI), on Monday entered into an agreement to incorporate a joint venture (JV) company in Singapore that will launch an electronic Asian bond trading platform.

SGX entered into the agreement with, among others, US-based fintech startup and corporate bond trading platform Trumid and HH THL Holdings, an affiliate of global investment firm Hillhouse Capital.

The JV company, XinTru, will operate Trumid XT, the trading platform aimed at enhancing liquidity and execution in the Asian bond market for global clients.

SGX's AGI will own about a third of the interest in the JV firm. AGI is paying a consideration that comprises all of the shares in SGX's wholly owned subsidiary SGX Bond Trading, cash and the provision of certain support services, including general counterparty services and other intangibles.

The book value of SGX Bond Trading was S$31.4 million as at June 30, 2020.

The completion of the transaction is conditional on, among other things, certain regulatory approvals being obtained.

Shares in SGX closed at S$9.84 on Monday, up S$0.02 or 0.2 per cent.