Singapore Exchange is joining forces with fintech Trumid and investment firm Hillhouse Capital to build an electronic Asian bond trading platform.
The partners have formed a joint venture, XinTru, that they say will boost liquidity and execution in the Asian bond market for global clients when it launches later this year.
SGX and Hillhouse Capital are both investors in US-based Trumid.
Trumid is providing the technology and fixed income expertise, while SGX’s brings experience in Asian financial market infrastructure and electronic trading, and Hillhouse supplies its network in Asia and the financial services sector.
XinTru's platform, called Trumid XT, will connect the commercial footprint and liquidity from SGX’s Bond Pro and Trumid’s Market Center in the US. The partners argue that no only will the platform enhance international access to Asian bond markets, but it will also facilitate Asian investor participation in US and global emerging market credit.
Loh Boon Chye, CEO, SGX, says: "Our early investment in Trumid paved the way for this deeper collaboration to advance the overall bond market infrastructure in Asia. Leveraging our Asian network and our Bond Pro business, we are excited to partner with Trumid and Hillhouse to accelerate the digitalisation and realise the full potential of Asia’s bond trading markets."