HSBC has completed its first live trades on the BondsInAsia trading platform, marking the start of legally binding online trades in the first three BondsInAsia markets: Hong Kong, Singapore and the G3 currencies (US dollar, yen and euro).
Currently trading is taking place only between the BondsInAsia's five shareholder banks, building on the system testing that has been carried over the past few months in which dummy trades have been executed over the live platform to test reliability. BondsInAsia has declined to set a date for when the trading platform will be open to all market participants.
"The system performed well," says Anita Fung, HSBC's head of trading, Asia-Pacific. "This new electronic trading platform is another example of HSBC's strategy of integrating new technology to improve customer service."
In the G3BondsInAsia market, HSBC traded a long-dated US dollar Hong Kong corporate bond. In the BondsInHongKong market, HSBC traded a Hong Kong Government Exchange Fund Note. In the BondsInSingapore market, HSBC traded a Singapore Government security.
BondsInAsia has plans for more franchises and wants to expand into Korea, Taiwan, Thailand, Malaysia, the Philippines and India, subject to appropriate approvals.
Besides HSBC, CSFB, Deutsche Bank, BNP Paribas and Citibank all have an equity stake in BondsInAsia. The banks have committed to participating in each Asian franchise on an equal basis with the other local dealer participants in each market. BondsInAsia itself will also maintain a stake in each franchise and provide them with the infrastructure, security and operational services for the trading platform.