4 September 2019
Jakarta – IDX officially appointed AxeTrading, Ltd to become a technology partner for the Electronic Trading Platform (ETP) for Indonesia Bonds Market. AxeTrading will provide the fixed income trading technology to be used by ETP. This development initiative is a follow-up from the permit granted by the Financial Services Authority (IFSA) to IDX as an Alternative Trading Market Operator (PPA). As a starting point of this initiative, IDX is committed to provide an ETP that can support liquidity and bring price transparency to Bonds and Sukuk (sharia bonds) Secondary Market, especially for Government Bonds issued by Ministry of Finance Republic of Indonesia. The development of this platform is scheduled to be completed in the first quarter of 2020 and will become the first stage of IDX’s continuous initiatives for the development of Indonesia Bonds Market.
AxeTrading was chosen by IDX through a strict selection process among other global prospective partners for its 10 years of experience in electronic trading and its expertise in the fixed income market. Furthermore, AxeTrading also has given its commitment to fulfill all requirements needed by IDX.
With the current size of US$217 billion (source: ADB), Indonesia Bond Market still has the potential to grow, so that the development of ETP for trading in Government Bonds, Corporate Bonds and Retail Bonds will play an important role. IDX and AxeTrading will collaborate together with Bond Dealers to deliver an ETP that will increase liquidity to Indonesia Secondary Market.
Inarno Djajadi, President Director of IDX, stated, “Indonesia Government and Corporate Bonds secondary market has been long traded over the counter (OTC). IDX takes the initiative for the role as PPA to organize the secondary market because of its unique strategic position. Supported by the latest technology and features focusing on the market needs, we believe that we can encourage the OTC Bond trading to be carried out through our ETP. The platform will offer flexibility on trading mechanism and feature that will increase chance-to-trade for market players. Furthermore, ETP can bring more transparency for price discovery to the market, as well as ease of reporting to the authority. Shortly it could be said that IDX ETP will become a preferred platform in Indonesia Bond Secondary Market and will be able to support the IFSA, the Ministry of Finance, and Indonesia Central Bank to monitor the Bond trading in Indonesia.
Ralf Henke, Chief Executive Officer of AxeTrading said, “AxeTrading is excited to enter this long- term partnership with IDX and is committed to help bring more efficiencies to the bond market in Indonesia. 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. Our AxeTrader product will allow Indonesian fixed income traders to connect and trade on the new IDX ETP along with other venues. AxeTrader is the best in class fixed income trading system that allows traders to streamline their workflows and enabled AxeTrading to pick up the Fixed Income Trading System of the Year at the FOW and Asia Capital Markets Awards 2018”
AxeTrading is a leading provider of trading solutions to global fixed income market participants. By integrating with, and providing access to, a wide range of fixed income execution venues and data sources across voice and electronic trading, AxeTrading equips traders with smarter tools to overcome the challenges of today’s markets. Its deep partnerships with clients go beyond simple aggregation, enabling the firm to reduce cost and operational risks across the trading floor, while facilitating regulatory compliance. AxeTrading was founded in 2009, and now has clients in more than 18 countries across 4 continents. For more information, visit www.axetrading.com.