Botswana Stock Exchange (BSE) leading company in India’s stock market has spoken out once again regarding need of bond market electronic centralization. Actually this is the reiterating proposal of leading stock market companies from many years. After multiple iterations, the stock exchange in India introduced ‘Automated Trading System (ATS)’ to bonds in the year 2012. Although ATS got introduced early, till today no bonds got traded through this system. It means ATS is not in use till today. Currently, almost all the stock markets around the world are using ATS except India. ATS initiates centralization of bond market which is highly advantageous for every stock market in terms of improving number of bids, reducing costs for investors, great transparency enabled for investors regarding the transforming information of stock values and many other advantages aiding towards improvement of stock market enabling liquidity.
Thapelo Tsheole – Deputy Chief Executive Officer of BSE is the one who iterated about the need of ATS once again yesterday. According to his opinion, good co-ordination should be maintained between banks and investors in order to succeed in the formation of ATS. Until and unless good coordination is not maintained, it would become difficult for ATS to function properly. He also stated that BSE has already enlisted about all the advantages supporting ATS proposal in 2012 including fast spread out of information, expansion of stock market with increase in number of bids,price discovery aiding towards liquidity in bond market.He also stated that there is a necessity to host attractive markets for corporate and government bonds in order to modify the existing infrastructure, central securities depository (CSD) and ATS of stock market aiding towards scope of high efficiencies and development of market. BSE bond market has improved growth in past 10 years ranging from P2.5 billion to P10.6 billion. In 2015, company’s growth is twice which is mainly based on government bonds accounted. BSE is fond of improvement, which lead to the introduction of three bond indices to solve the lacking problem of benchmark portfolios in the year 2013.
BSE Initiatives to Improve Liquidity
In 2010, BSE prepared a list of several challenges which are highly impacting on the development of BSE. Lack of information spread out, pricing issues, lack of fair values, lack of robust risk-free curve, lack of benchmark bond index, lack of skills in trading and settlement are some challenges enlisted. He said that this list will help government to close maturity gaps and issues present in between investors and market. Based on these challenges, standard bond pricing formulas are drafted by BSE in 2012 along with market conventions. Thereafter, in the year 2013, bond indices were introduced by BSE which highly improved usage. Turnover got increased with high improvement in Exchange Traded Funds (ETF’s) seen in 2015 compared to the past year 2014. Majority ETF inflows are recorded from BettaBeta ETF traded 7.8 million units having the value of P326.5 million, NewGold traded 232,000 units having the value of P26.2 million and NewPlat traded 735,000 units having the value of P82.1 million. Demutualization started by BSE will lead it as one on the top list of exchange.
Thapelo Tsheole – Deputy Chief Executive Officer of BSE is the one who iterated about the need of ATS once again yesterday. According to his opinion, good co-ordination should be maintained between banks and investors in order to succeed in the formation of ATS. Until and unless good coordination is not maintained, it would become difficult for ATS to function properly. He also stated that BSE has already enlisted about all the advantages supporting ATS proposal in 2012 including fast spread out of information, expansion of stock market with increase in number of bids,price discovery aiding towards liquidity in bond market.He also stated that there is a necessity to host attractive markets for corporate and government bonds in order to modify the existing infrastructure, central securities depository (CSD) and ATS of stock market aiding towards scope of high efficiencies and development of market. BSE bond market has improved growth in past 10 years ranging from P2.5 billion to P10.6 billion. In 2015, company’s growth is twice which is mainly based on government bonds accounted. BSE is fond of improvement, which lead to the introduction of three bond indices to solve the lacking problem of benchmark portfolios in the year 2013.
BSE Initiatives to Improve Liquidity
In 2010, BSE prepared a list of several challenges which are highly impacting on the development of BSE. Lack of information spread out, pricing issues, lack of fair values, lack of robust risk-free curve, lack of benchmark bond index, lack of skills in trading and settlement are some challenges enlisted. He said that this list will help government to close maturity gaps and issues present in between investors and market. Based on these challenges, standard bond pricing formulas are drafted by BSE in 2012 along with market conventions. Thereafter, in the year 2013, bond indices were introduced by BSE which highly improved usage. Turnover got increased with high improvement in Exchange Traded Funds (ETF’s) seen in 2015 compared to the past year 2014. Majority ETF inflows are recorded from BettaBeta ETF traded 7.8 million units having the value of P326.5 million, NewGold traded 232,000 units having the value of P26.2 million and NewPlat traded 735,000 units having the value of P82.1 million. Demutualization started by BSE will lead it as one on the top list of exchange.