The Central Bank of Sri Lanka last week announced it would release market information twice a day, at noon and close of the day soon. The decision has been taken after commercial banks, in the second stage also joined the Bloomberg electronic bond trading platform for government securities secondary market transactions with effect from 15.09.2016. Prior to this, all primary dealers joined the platform on 01.08.2016. As the next stage, the Central Bank is now considering introducing the repurchase/reverse repurchase transactions to this electronic bond trading platform.
“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 mn and above within 30 minutes,” the financial regulator said in a statement.
It noted that 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,” the Bank added.
The Central 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 bn took place in trade of the majority of securities in issue.