SGX signs MOU to develop fixed income access with Philippines

SGX signs MOU to develop fixed income access with Philippines
Posted: 20 March 2013 2132 hrs

SINGAPORE : The Singapore Exchange (SGX) has signed an agreement with Philippine Dealing System Holdings Corp (PDS) to develop fixed income access between the two countries.

In a statement, SGX said both parties will also be developing trading platforms to support cross-border fixed income trading.

They will also look into the development of cross-border and intra-regional clearing, settlement and depository services for these fixed income markets.

Under the collaboration, 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 the Philippines Depository and Trust Corp and SGX's Central Depository.

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."

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."

- CNA/ch

- wong chee tat :)