Fidelity International and JPMorgan Chase are among bond investors warming to electronic trading systems in Asia.
Bloomberg News reports that more than 70% of the bond transactions for JPMorgan’s private banking arm are handled through such systems, compared with around 20 percent seven to eight years ago. The Asian fixed-income team of Fidelity saw similar trades grow five-fold since 2007. The Singapore Exchange Ltd. has been recruiting more participants to its debt platform since its launch in December.
'Electronic trading improves productivity, offers more transparency and cuts costs', said Ben Sy, the head of fixed income, currencies and commodities at the private banking arm of JPMorgan in Hong Kong. 'So there are a lot of economic incentives for both the sell-side and the buy-side'.
Electronic platforms allow dealers to put in bid and offer prices for bonds. Buyers can then confirm an order online and the system will automatically process the documentation. This saves time spent on the phone and the cost of manual settlement.
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