Cape Town - South Africa will implement an electronic trading system for government bonds, mandating primary dealers to quote two-way prices on the securities, the National Treasury said.
The platform will be developed and regulated by the Johannesburg Stock Exchange and run in tandem with its existing reporting system, the Treasury said in an e-mailed statement today.
While it would initially be only for trading of government bonds, the system may be extended to other securities, it said.
The move is to “enhance the transparency within the South African bond market and enable the Treasury to more accurately monitor the activities of primary dealers,” it said.
The JSE and a committee representing bond traders and investors are evaluating 12 potential technology providers following a request for proposals, the Treasury said.
The implementation date will be determined during the design phase, it said. - Bloomberg News