SINGAPORE, Nov. 22, 2022 /PRNewswire/ -- TransFICC and BondbloX Bond Exchange have signed an MOU to enable sell-side banks to trade digital bonds. There has been a recent spurt in the issuance of digital bonds, however it has hitherto been hard to trade them in the secondary market. BondbloX is the world's first bond exchange built on Distributed Ledger Technology (DLT). Using TransFICC, fixed income desks of the major banks can trade on the bond exchange without needing to incur additional technology infrastructure spend.
Financial Institutions can leverage the client library offered by TransFICC to connect and trade on multiple FICC trading venues. Adding the BondbloX Bond Exchange will be a big leap towards enabling the trading of Digital Assets called BondbloX within traditional financial markets.
TransFICC is already connected to the BondbloX Bond Exchange for live market data and will be expanding this partnership to include (1) Streaming of orders into the BondbloX CLOB for fractional bonds, (2) RFQ based trading of Full-Size bonds and (3) STP of trade settlements.
"Credit trading desks wish to trade bonds more efficiently without counterparty risk, and the TransFICC API allows them to connect with us quickly. TransFICC transforms traditional orders into a form that can trade digital bonds." said Dr Rahul Banerjee, CEO and Co-founder of BondEvalue.
"We are happy to partner with BondbloX, which offers clients an alternative source of liquidity on a regulated bond exchange," said Steve Toland, Co-founder of TransFICC.
TransFICC is an eTrading technology company providing solutions for the Fixed Income and Derivatives Markets. TransFICC specialises in API translation and connectivity technology to address issues of market fragmentation, data throughput and automation of trading workflows.
The BondbloX Bond Exchange ("BBX") is the world's first fractional bond exchange launched by BondEvalue. Regulated as a Recognised Market Operator by the Monetary Authority of Singapore, BondEvalue transforms the bond market by enabling investors to conduct electronic bond trading of fractional bonds ("BondbloX") via partner banks and brokers.
As an exchange, settlement is atomic, prices are fully transparent, and execution is on a Central-Limit-Order Book. BondEvalue's proprietary technology and enterprise-grade blockchain enable investors to buy and sell bonds in denominations of SGD/US$1,000 instead of the usual SGD 250,000/US$200,000.