SGX pushes into Asian bond trading as IPOs sink

SINGAPORE (May 26): Singapore Exchange Ltd (SGX) is seeking to capture a larger slice of secondary trading of foreign-currency bonds from Asian issuers to augment revenue as it endures a multi-year slump in initial public offerings.

The bourse is recruiting more participants to its bond trading venue since its launch in December, Tsai Li Renn, head of fixed-income trading, said in an interview. There are about US$10.8 trillion ($14.9 trillion) worth of notes outstanding denominated in the US dollar, euro and yen issued by companies and governments in the Asia-Pacific region, according to Bloomberg data.

“The Asian bond market will continue to grow because of the underlying investor demand and we look at the market infrastructure to support that growth,” Tsai said. “We believe we can reconnect the fragmented liquidity fields, especially post-the global financial crisis.”

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