KUALA LUMPUR (March 29): BURSA MALAYSIA BHD [] plans to introduce a trading platform for retail bonds in the second half of 2012.
CEO Datuk Tajuddin Atan said with that, exchange-traded bonds could be bought through brokers just like equities.
It would offer stability to retail investors and enable them to have exposure to interest rates, he said.
"Bonds are always traded on the over the counter (OTC) market and the participants have always been institutional.
"My thinking is that, why not offer to retail investors that have more transparency and that can create liquidity and can give stability," he said after Bursa Malaysia's 35th annual general meeting here on Thursday.
He said the exchange was going through several issues and was looking at introducing it in the second half of this year after putting a few things in place.
Tajuddin said the retail bonds would see Bursa Malaysia offering another asset class that would allow investors to switch from equities to debt instruments.
"I think one of the key issues that Bursa wants to do is to enhance investors' capability and knowledge as their portfolio would cover not only equities but debt instruments that have exposure to interest rates," he said.
He said Bursa Malaysia was also looking at introducing futures and option products. - Bernama
CEO Datuk Tajuddin Atan said with that, exchange-traded bonds could be bought through brokers just like equities.
It would offer stability to retail investors and enable them to have exposure to interest rates, he said.
"Bonds are always traded on the over the counter (OTC) market and the participants have always been institutional.
"My thinking is that, why not offer to retail investors that have more transparency and that can create liquidity and can give stability," he said after Bursa Malaysia's 35th annual general meeting here on Thursday.
He said the exchange was going through several issues and was looking at introducing it in the second half of this year after putting a few things in place.
Tajuddin said the retail bonds would see Bursa Malaysia offering another asset class that would allow investors to switch from equities to debt instruments.
"I think one of the key issues that Bursa wants to do is to enhance investors' capability and knowledge as their portfolio would cover not only equities but debt instruments that have exposure to interest rates," he said.
He said Bursa Malaysia was also looking at introducing futures and option products. - Bernama
