Bond Trading System

Abstract:

In this paper we will discuss about bond trading system. Several Countries, like India, Japan etc, have already started using electronic bond trading system.

Unlike the stocks, no central exchange or place exists for bond trading. Normally, the bond market is often termed as over the counter market.

However, the bond options and bond futures are traded on the exchanges. In some developing and developed countries, the electronic bond trading systems help the traders to trade with bonds.

In India the electronic bond trading system has been introduced in March 2008. This enables the corporate bond traders to trade easily using the Internet. Experts think that the electronic bond trading system will take over the voice trading market gradually.

In Japan, the Lehman Brothers did the groundwork to establish electronic bond trading system in that country. In 2000, the company, along with SoftBank Finance introduced the electronic bond trading system in Japan. This has helped the traders to trade online. Therefore, the traders are able to save ample time and taking part in some other financial market.

Several underdeveloped countries, for example, Egypt, are now willing to establish electronic bond trading system to stay in the global bond market.

Countries like Indonesia have introduced Fixed Income Trading System as a bond trading mechanism, which enables the traders to trade the retail bonds.