Electronic corporate bond trading system launched

Written by Agencies | Mumbai, March 28: | Updated: Mar 28 2008, 20:43pm hrs
Finance Minister P Chidambaram launched the country's first electronic corporate bond trading system for institutional investors.

The system offers both voice and electronic trade execution services to wholesale debt market players like banks, insurance companies, mutual funds and primary dealers.

The new trading platform for over-the-counter deals has been made available by ICAP India Pvt Ltd, the world's premier voice and electronic inter dealer broker.

ICAP India Vice-Chairman Manish Sabharwal said the new trading platform is expected to increase the market breadth and depth.

The platform will complement but not replace the current market practice of voice trading, he said.

The corporate bond market in India is underdeveloped, compared to other financial markets like the equities market and the secondary trading volumes in the bond market is only a fraction of what it is in the equities market.