Today, the Indonesia Stock Exchange (IDX) launched their Electronic Trading Platform (ETP) for secondary market trading of bonds and sukuk using AxeTrading’s AxeChange technology.
The ETP is named Alternative Market Operator System (SPPA).
Indonesia is one of the largest EM bond markets in the region, valued at around USD 220 BN equivalent. To date, 18 of the 20 Primary Dealers for Government Bonds (SUN) have become SPPA users, along with a further three Indonesian bond market players who can start using SPPA as a bond and sukuk trading platform.
AxeTrading was chosen by IDX as the on-going technology partner for the platform, through a strict selection process over other global prospective partners, for its over 10 years of experience in electronic trading and its expertise in the fixed income market.
AxeChange is the software to power execution venues for fixed income products and enables the trading of government, corporate, sukuk and retail bonds across reserve and local currencies. To increase the size and number of market participants, drive interest from new debt issuers and to better meet growing local funding requirements, exchanges have to innovate their bond trading offering and effectively embrace both voice and electronic trading.
"SPPA has been designed in such a way as to accommodate the needs of the bond and sukuk market players in Indonesia, with the hope of increasing liquidity and efficiency of the Indonesian bond and sukuk market," said IDX Business Development Director Hasan Fawzi. “IDX is collaborating with global bond trading solution provider, AxeTrading, to develop SPPA so that the system we are developing is a system that is applicable according to best practices and is user-friendly," he concluded.
Ralf Henke, Chief Executive Officer of AxeTrading, said “We are proud and delighted to be working with the Indonesia Stock Exchange as their technology partner to deliver this significant step in the development of the Indonesian bond and sukuk market using our AxeChange technology. Our AxeTrader Quoting and Execution Management System is the best gateway to this new trading platform. It gives dealers the tools they need to boost their trading with automated workflows to help them trade better and faster than ever before. AxeTrader gives seamless support for both voice trading and access to electronic trading in the Indonesia, Asian and global markets”.
AxeTrading does not compete with trading venues, but partners with them to deliver an efficient, effective and modern fixed income trading experience that enhances and develops their local bond markets to meet their commercial objectives and those set by governments, financial authorities, and bond market associations.
Working with International Finance Corporation, part of the World Bank Group, as a strategic partner, AxeTrading continues to accelerate the evolution of fixed income markets by delivering advanced technology for dealers and trading venues to broaden participation, which provides liquidity and market transparency.
The recently upgraded AxeTrader Quoting and Execution Management System (QEMS), interacts seamlessly across over 23 execution venues, including the new IDX ETP, and connects to 11 leading market data sources to provide fixed income dealers with market aggregation and trading workflows in a single desktop.