MAS: Annual report 2006 / 2007
CONTENTS
HOME
 
ENTERPRISE: Our Role
BUILDING ON A ROBUST MACROECONOMIC ENVIRONMENT
DEVELOPMENTS IN THE SINGAPORE SECURITIES MARKET
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE
RISK MANAGEMENT & INFRASTRUCTURE
GROWING SINGAPORE AS AN INTERNATIONALLY COMPETITIVE FINANCIAL CENTRE
CURRENCY
ORGANISATIONAL INITIATIVES
DEVELOPMENTS IN THE SINGAPORE GOVERNMENT SECURITIES MARKET 25
Singapore Government Securities Electronic Bond Update 25
Extending the SGS Yield Curve: The 20-year SGS 25
 

DEVELOPMENTS IN THE SINGAPORE GOVERNMENT SECURITIES MARKET

Singapore Government Securities Electronic Bond Update
In July 2005, MAS introduced an electronic bond trading platform (SGS E-bond) developed in conjunction with Bloomberg to facilitate the secondary trading of Singapore Government Securities (SGS). Most transactions between Primary Dealers (PDs) are done on the platform, and pre- and post-trade information is available to all participants. This has improved market transparency as well as enhanced market stability and encouraged wider participation in the SGS secondary market.

The second phase of the platform, the electronic broking (E-Broking) module launched in May 2006, is a quote-driven e lectronic order book where price providers can leave their bids and offers. The order book is broadcast, providing first-level price transparency. It builds on the request for quotation (RFQ) module, which was launched as part of the initial construct of the SGS E-Bond in July 2005 and allows market participants to request SGS quotes bilaterally.

Extending the SGS Yield Curve: The 20-year SGS
On 1 March 2007 MAS issued the inaugural 20-year SGS to extend the government benchmark yield curve, serve as a pricing benchmark for other long duration Singapore Dollar (SGD) interest rate products and broaden the investor base by reaching out to pension funds and insurance companies. The S$2.5 billion issue was in line with market expectations and was well-received.