Hong Kong Exchanges and Clearing Limited (HKEx) has agreed to acquire an interest which currently represents a 15.58 per cent shareholding in BondsInAsia Limited (BIA), the premier fixed income trading platform in Asia. This level of investment is the same as BIA's existing bank shareholders. (The amount of investment by HKEx in BIA is not such as to constitute a notifiable transaction under the Listing Rules.)
The proposed investment represents an opportunity for HKEx to invest in an organisation with strategic benefits.
The strategic partnership with BondsInAsia will enable HKEx to participate in the development of Asia's bond markets with the region's major fixed income dealers. In addition, the partnership will provide an opportunity for HKEx to leverage the development of a trading facility for both fixed income securities and interest rate futures contracts, which could generate additional business for HKEx.
Kwong Ki-chi, chief executive of HKEx, said HKEx is keen to develop the bond market in Hong Kong. "The BIA system allows its users to trade a wide range of Asian fixed income securities in their local currencies as well as in the G3 currencies, the US dollar, the Japanese Yen and the Euro. HKEx's investment in BIA will facilitate access via the exchange to BondsInAsia's proprietary electronic trading platform. This will help to encourage the development of a more active bond market in Hong Kong," Mr Kwong said.
BondsInAsia Chief Executive Officer, Albert Cobetto, said "We are extremely pleased to welcome HKEx as a strategic partner and shareholder. It is an exciting time for the bond markets in Asia. Together with HKEx, we have the common objective to grow and develop the fixed income securities markets in Hong Kong and other major markets in Asia. By collaborating on this initiative and leveraging our mutual resources and infrastructures, we are confident that we can deliver Asian fixed income products more efficiently and continue to maintain our position as the leading fixed income trading platform in Asia."
BIA provides a sophisticated electronic trading platform globally for Asian fixed income securities. It allows market makers and institutions to complete Asian fixed income transactions with speed and efficiency in a secure environment.
About HKEx
HKEx is the publicly listed holding company of The Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Limited and their related clearing houses. The company provides a comprehensive range of pre- and post-trade investment services as well as market information services. HKEx's stock exchange is the second largest in Asia and the tenth largest stock exchange in the world. For more information, please visit HKEx's website atwww.hkex.com.hk.
About BondsInAsia
BondsInAsiaTMis the leading electronic trading platform for Asian fixed income securities. BondsInAsia's proprietary trading technology interlinks the region's leading fixed income players with major buy-side institutions. The company's technology platform allows market makers to efficiently and instantaneously trade bonds within the professional markets as well for Dealers to privately trade with their buy-side clients. Currently, the platform facilitates trading of Asian government and corporate debt securities in the HKD, SGD, USD, Yen and Euro currencies. In 2002, the company intends to expand into additional Asian local currency bond markets as well as to develop electronic trading platforms for other fixed income related products.
Current shareholders of BIA are BNP Paribas, Citigroup, CSFB, Deutsche Bank, HSBC and Reuters; other stakeholders in the BIA franchises will include Barclays, DBS Bank, Hang Seng Bank, and Salomon Smith Barney. For more information about BondsInAsia, please visit the company's website at www.bondsinasia.com.