Bond Market Developments : More Good News
We have been unhappy with the state of the SGD bonds OTC markets for a while now as we noted in May when an investor submitted some market feedback to the ST forum pages. https://tradehaven.net/market/singapore-bond-market-look-no-further/
For myself it is with a twinge of slight guilt for the years that I have resisted promoting transparency from my little corner, when I still had some little influence. But that would have made little difference, I’d like to think. Because Canada has had this problem for years too.
“The Canadian Securities Administrators, a coalition of the country’s provincial and territorial securities regulators, announced last month it’s starting a review of transparency in the C$390 billion ($366 billion) corporate bond market. The CSA questioned whether the private sector-led transparency model currently in place is working, and if more active regulation is needed.
The move comes as bond trading falls under closer scrutiny worldwide with the top regulator in the U.S. calling for more public information on private trading, and the European Union seeking to build a system to publicly disclose prices in real time.” http://washpost.bloomberg.com/Story?docId=1376-N857EY6TTDT501-71243EFEME0LOJLJ7I24TPPHAF
The Monetary Authority of Singapore has raised the issue in recent discussions with market participants, according to multiple sources.
Although there is no suggestion that ratings will be compulsory, the discussions point to regulators’ concerns that the prevalence of unrated debt is decreasing transparency and hurting liquidity.” http://www.ifrasia.com/singapore-takes-aim-at-unrated-bonds/21153036.article
We should do well to expect that Singapore will be stepping up the pace to clean up the marketplace and some white papers to be put forth in the near future to further market development.