The Central Bank recently announced it has commenced releasing summary trading statistics on actual trading of government securities in the secondary market with effect from August 1, 2016. Accordingly, the Monetary Authority says all primary dealers have been required to undertake inter-primary dealer trades in the trading platform arranged by the Central Bank through the Bloomberg’s financial trading and information platform.
Further, all primary dealers will report all outright sales of government securities of value in excess of Rs. 50 mn to investors to this platform within 30 minutes of each transaction.
“The availability of such market information will further promote transparency, price discovery and outreach of the government securities market in parallel to other financial markets. In due course, outright secondary market sales of government securities by non-primary dealer banks to their customers also will be brought into this system,” the Central Bank said.
The Central Bank says it will monitor these transactions on an on-going basis and summary of trading information consisting of yield rates and volume by each series of securities traded will be published in the Central Bank website.
“The Central Bank plans to release such information twice a day, at noon and close of the day, in due course when the reporting system is fully operative. This information will help investors to study the current status of government securities market conditions along with other financial market and economic information and make more informed decisions in relation to their investments.”
The Central Bank says it has commenced procurement process for setting up a dedicated electronic trading platform along with Central Counterparty System which will provide market information on real time basis similar to other developed financial markets and further develop the government securities market to international standards.