Transparency in Government Securities market further improves
View(s):Under a programme of more transparency, commercial banks have joined the Bloomberg electronic bond trading platform for government securities secondary market transactions with effect from September 15. Prior to this, all primary dealers joined the platform on August 1. “Therefore, now all primary dealers and banks undertake trades among them in the platform and report all over-the-counter outright deals with investors of Rs. 50 million and above within 30 minutes,” the Central Bank said in a media release.
The bank releases basic trade information on yields and volumes by each security traded to its website next day. During 32 market days from 01.08.2016 to 15.09.2016, a number of 1,816 outright transactions amounting to Rs. 218.7 billion took place in trade of the majority of securities in issue. In due course, the bank said it will release such market information twice a day, at noon and close of the day.
“Accordingly, all stakeholders have now begun to yield the benefits arising from the transparency, price discovery and liquidity created through this trading platform in the market. The Central Bank is grateful to all those stakeholders who supported this significant milestone in further development of government securities market in Sri Lanka. As the next stage, the Central Bank is now considering to introduce the repurchase/reverse repurchase transactions to this electronic bond trading platform,” the release added.