IDX Works with AxeTrading to Launch Electronic Trading Platform

Published on its official website, the Indonesia Stock Exchange (IDX) announced that it has launched its Electronic Trading Platform (ETP) for secondary market trading of bonds and sukuk using AxeTrading's AxeChange technology. The ETP is named Indonesia Alternative Market Trading System (SPPA).

Indonesia is one of the largest EM bond markets in the region, valued at around USD 220 BN equivalent. To date, 18 of the 20 Primary Dealers for Government Bonds (SUN) have become SPPA users can start using SPPA as a bond and sukuk trading platform.

AxeChange is the software to power execution venues for fixed income products and enables the trading of government, corporate, sukuk and retail bonds across reserve and local currencies. To increase the size and number of market participants, drive interest from new debt issuers and to better meet growing local funding requirements, exchanges have to innovate their bond trading offering and effectively embrace both voice and electronic trading.

AxeTrading does not compete with trading venues, but partners with them to deliver an efficient, effective and modern fixed income trading experience that enhances and develops their local bond markets to meet their commercial objectives and those set by governments, financial authorities, and bond market associations.

AxeTrading is said to have been chosen by IDX as the on-going technology partner for the platform, through a strict selection process over other global prospective partners, for its 10+ years of experience in electronic trading and its expertise in the fixed income market.

"SPPA has been designed in such a way as to accommodate the needs of the bond and sukuk market players in Indonesia, with the hope of increasing liquidity and efficiency of the Indonesian bond and sukuk market, "said IDX Business Development Director Hasan Fawzi.  "IDX is collaborating with global bond trading solution provider, AxeTrading, to develop SPPA so that the system we are developing is a system that is applicable according to best practices and is user-friendly," he concluded.