South Africa’s Johannesburg Stock Exchange (JSE) has launched an electronic trading platform (ETP) for government bonds.
The platform was launched in partnership with the country’s ministry of Treasury and a multi-stakeholder group consisting of Strate, the Financial Sector Conduct Authority (FSCA) and banking institution. The electronic trading platform for bonds is meant to allow transparency, price discovery and settlement assurance to allow issuers to transact anonymously both pre-trade and post-trade.
“A more sophisticated market infrastructure benefits issuers, investors and further positions South Africa as an attractive investment destination. The launch of the Bond ETP was also an important element of South Africa’s commitment to Capital Markets reform at the G-20 group of nations,” said Donna Nemer, director of Capital Markets at the JSE. “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.”
The JSE has more than 2 trillion rand ($129bn) in government bonds listed and these instruments account for over 90% of all debt market liquidity reported to the JSE.