Honourable Union Finance Minister Shri P. Chidambaram today launched ICAP’s Corporate Bond Electronic Trading System. The system is India’s first electronic corporate debt marketplace for institutional over-the-counter corporate bond markets.

ICAP’s corporate bond trading system offers hybrid (both voice and electronic) trade execution services to wholesale debt market players like banks, insurance companies, mutual funds, and primary dealers. The inaugural transaction on the system was put through at 9.40% XIRR yield for 9.10% IDFC 2018 corporate bond on behalf of buyer ICICI Securities Primary Dealership Limited and the seller HDFC Bank Limited for a face value of Rs.25 crores by the Finance Minister.

The corporate bond market in India is underdeveloped relative to other financial markets (secondary trading volumes were 0.5% of equity secondary volumes last year) and has huge potential for growth (outstanding issuances are 1.5% of GDP).The importance of corporate bonds are two-fold – they provide long term capital for infrastructure investments and offer tenure matched assets for pensions and other long term liabilities.

ICAP’s launch follows active reform of the corporate bond regulations relating to issuance, listing and trading over the last two years.

The new platform will increase market breadth and depth by bringing speed, transparency, and efficiency to corporate bond trades. The platform has a number of features like a real-time credit matrix, online database, integrated yield/ price calculator, trade blotter, trade history, audit trail, drip feed, conditional orders, straight through processing that can allow trades to flow real-time to the internal systems of users reducing manual intervention from the point of trade, etc. The platform will complement but not replace the current market practice of voice trading.

Mr. Manish Sabharwal, Vice Chairman, ICAP India, said, “ICAP India is pleased to build on its leadership position in the Indian voice OTC markets by introducing its electronic trade execution platform in the corporate bond markets. ICAP Plc now executes over 50% of its daily global volumes of $1.5 trillion electronically and our global experience shows that our platforms substantially increase market depth and breadth with higher efficiency, transparency and interactivity”

ICAP India has been operating as a joint venture in India since 1999 and is licensed to offer voice execution services in foreign exchange and fixed income markets.

Sourced From: Adfactors Public Relations Pvt Ltd

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