Columbo exchange launches repo platform for corporate bonds
16 September 2021 Sri Lanka
Image: AdobeStock/Madrugada Verde
The Columbo Stock Exchange (CSE) has introduced an over-the-counter (OTC) trading platform to support repo transactions on corporate debt securities.
The Sri Lankan exchange indicates that this new service will complement trading services provided for corporate bonds on its automated trading system (ATS) platform and aims to improve liquidity in corporate debt markets.
“Considering the large volumes of fixed income securities actively traded by market participants outside the CSE’s platforms, the CSE observed the opportunity to play a role as a facilitator in connecting securities providers with collateral who need to finance their liquidity requirements with cash providers,” says the exchange.
The OTC platform provides a matching facility, ensuring counterparty trade instructions are aligned prior to execution of the repo transaction, as well as supporting collateral replacement and rollovers.
On launch, the OTC platform will support only repo transactions conducted against CSE-listed corporate debt securities. In consultation with market participants, CSE will review opportunities for extending the range of securities that may be financed on the platform as the service evolves.
The Securities and Exchange Commission of Sri Lanka, the securities market regulator, has approved necessary changes to trading rules and master repurchase agreements prior to the platform going live on 16 September.
The Sri Lankan exchange indicates that this new service will complement trading services provided for corporate bonds on its automated trading system (ATS) platform and aims to improve liquidity in corporate debt markets.
“Considering the large volumes of fixed income securities actively traded by market participants outside the CSE’s platforms, the CSE observed the opportunity to play a role as a facilitator in connecting securities providers with collateral who need to finance their liquidity requirements with cash providers,” says the exchange.
The OTC platform provides a matching facility, ensuring counterparty trade instructions are aligned prior to execution of the repo transaction, as well as supporting collateral replacement and rollovers.
On launch, the OTC platform will support only repo transactions conducted against CSE-listed corporate debt securities. In consultation with market participants, CSE will review opportunities for extending the range of securities that may be financed on the platform as the service evolves.
The Securities and Exchange Commission of Sri Lanka, the securities market regulator, has approved necessary changes to trading rules and master repurchase agreements prior to the platform going live on 16 September.
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