Electronic Bond Trade Carried Out by MarketAxess for the Indian Government
MarketAxess Holdings Inc., a leading electronic trading solution provider, has launched a groundbreaking platform for trading Indian Government Bonds (IGBs) specifically designed for Foreign Portfolio Investors (FPIs) and market makers. This new solution aims to make access to India's onshore bond market more efficient and scalable, aligning with the country's growing inclusion in major global indices and driving stronger investor interest.
The new platform offers a fully electronic workflow, from pre-trade allocation to post-trade reporting, integrated directly with the NDS-OM system operated by the Clearing Corporation of India Limited. This connectivity enhances price transparency, execution speed, and reduces the risk concentration by facilitating smaller, more frequent trades, which historically were larger due to limited electronification.
The platform uses a request-for-quote (RFQ) protocol on a familiar trading interface, increasing workflow efficiency and potentially increasing market liquidity. The first trade on this new platform was completed between BlackRock and Standard Chartered, with Riad Chowdhury, Head of Asia-Pacific at MarketAxess, expressing satisfaction with the completion. Jatin Vara, Head of International Trading at BlackRock, also expressed excitement about the increased efficiency and scalability in access to India's onshore bond market.
The new platform is purpose-built to meet the specific needs of institutional investors and dealers. It is not exclusive for any specific group or institution, making it accessible to a broad audience interested in securities markets. Subscribers will receive the newsletter via email, as MarketAxess announces plans for a newsletter to provide exclusive articles on securities markets. The newsletter sign-up is available on the MarketAxess website.
FPIs benefit from more efficient market access and scalable trading options, which can lower transaction costs and operational burdens. Market makers gain from reduction in information leakage and the ability to provide more continuous liquidity. This innovation is expected to increase client adoption, boost transaction volumes, and support India’s emerging-market bond integration into global portfolios.
India offers compelling opportunities for foreign investors, especially in its expanding onshore bond market, according to Jatin Vara. The continued inclusion of India in major global indices is fueling strong investor interest. MarketAxess looks forward to increased client adoption in the coming months for its new trading solution for IGBs.
[1] MarketAxess Press Release: [Link to the press release] [2] Clearing Corporation of India Limited Press Release: [Link to the press release] [3] BlackRock Press Release: [Link to the press release] [4] Standard Chartered Press Release: [Link to the press release]
- The newly launched platform by MarketAxess Holdings Inc. incorporates technology, such as a request-for-quote (RFQ) protocol, to enhance workflow efficiency and potentially increase market liquidity in the Indian Government Bonds market.
- The integration of the new platform with the NDS-OM system operated by the Clearing Corporation of India Limited utilizes advanced technology to increase price transparency, execute trades quickly, and facilitate smaller, more frequent trades, thus reducing financial risks.
