An agreement between the Singapore Exchange (SGX) and Philippine Dealing System Holdings Corp (PDS) to develop fixed income access between Singapore and Philippines has been signed.

SGX said both parties will be developing trading platforms to foster cross-border fixed income trading.

They also intend to examine development of cross-border and intra-regional clearing, settlement and depository services for these fixed income markets.

Through this collaboration, domestic banks and institutional clients in respective countries will be able to hold their government bond investments in their respective depositories via a link between the Philippines Depository and Trust Corp and SGX’s Central Depository.

Says Vicente B. Castillo, President and CEO of PDS, “The joint efforts of SGX and PDS to work towards developing an organised regional fixed income market will not only provide the necessary price transparency, depth of liquidity and a sound settlement process that fosters investor protection but also provide local dealers in the ASEAN and Pan-Asian markets with a chance to play a central role in this endeavour. Domestic issues and regional investors will gain wider access to funding an an expanded array of investment outlets, respectively.”

CEO of SGX, Magnus Bocker added, “With bon markets in Asia growing significantly and strong demand from investors for price transparency and liquidity in this asset class, this collaboration between SGX and PDS is seen to be timely and beneficial to investors.”