The Indonesia Stock Exchange (IDX) has appointed AxeTrading as its technology partner for the Indonesian bond market, as the exchange group prepares to deploy a new electronic bond trading system.
AxeTrading will provide the technology to be used on the new platform, after IDX received approval from the Indonesian Financial Services Authority (FSA) to operate as an alternative trading market operator (PPA).
The platform will support liquidity and price transparency, and is scheduled to be completed in the first quarter of 2020. The fixed income trading technology specialist was chosen by IDX following an intense selection process among other prospective technology partners. The firm said it has now given commitment to fulfill all requirements made by IDX.
President director of IDX, Inarno Djajadi, commented that the Indonesia government and corporate bonds secondary market has long been traded over the counter (OTC) and the technology initiative aims to make IDX the preferred platform for the region’s $217 billion bond market.
“The platform will offer flexibility on trading mechanism and feature that will increase chance-to-trade for market players. Furthermore, ETP [electronic trading platform] can bring more transparency for price discovery to the market, as well as ease of reporting to the authority,” Djajadi said.
AxeTrading chief executive, Ralf Henke, added that the firm’s AxeTrader product will allow fixed income traders in Indonesia to connect and trade on the new platform, as well as other trading venues. AxeTrader aims to streamline workflow for bond traders.
“AxeTrading is uniquely placed to offer the technology and tools required to traders in the largest economy in South East Asia and one of the fastest growing economies in the world. Working with IDX allows AxeTrading to help drive change and bring further transparency to the Indonesia bond market. AxeTrading is happy to continue our growth in the Asia Pacific region,” Henke said.