Commonwealth Bank first Australian Bank to join Asian Online Force
26 April 2001
The Commonwealth Bank Group today announced its decision to be an equity participant and strategic partner with asiabondportal.com.
The Commonwealth Bank will join with Deutsche Bank, ABN AMRO, UBS Warburg, JP Morgan, Government of Singapore Investment Corporation and Daiwa SMBC in the multi-contributor portal, which is considered the benchmark in online bond trading in Asia.
Commenting on the move Peter Prowse, Global Head of ecommerce Financial Markets said "The Commonwealth Bank is committed to developing online alliances that expand our reach into new markets and afford us the opportunity to participate in next generation multi contributor portals." He continued "asiabondportal.com is now established as the dominant online bond portal for the Asian fixed income markets. It provides world class research and a comprehensive Asian bond database as well as the ability to price and trade bonds online with the many alliance partners."
Peter Prowse said "By participating in an alliance such as asiabondportal.com, the Commonwealth Bank has an effective means of sharing its capabilities and knowledge while expanding its client reach with AUD/NZD fixed income pricing and research. Participating in these new collaborative networks is an important part of the Commonwealth Bank Financial Markets' ecommerce strategy and fills a strategic niche in our client coverage model."
asiabondportal.com went live for trading in October 2000 providing US dollar-denominated bonds issued by Asian entities including convertible bonds. Commonwealth Bank will provide online transactional functionality and research across Australian and New Zealand Government, Semi Government and Corporate bonds.
The site offers a comprehensive range of proprietary credit research from the world's leading investment analysts, interactive news and bond price information services, professional market commentary, portfolio management, performance tracking, a chat room and message board as well as a multi-contributor trading system.
The asiabondportal.com system has been designed for client "buy-side" institutions in Hong Kong, Singapore, Japan and the United Kingdom. By utilizing the system, banks, insurance companies and fund managers can obtain pricing information on bonds and transact bonds on-line.
Furthermore, a large database of bonds and credit research underpins the trading activity which provides additional transparency to market participants.
One of the main benefits of the system is that clients utilizing asiabondportal.com are transacting in a multi-dealer environment, enhancing price competitiveness of bids and offers quoted by dealers and market-makers. To date a number of large institutional investors have signed up and trade on the system. Although Australian entities are not presently able to access the system's capabilities, an application to allow this has been made to the Australian Securities and Investments Commission. asiabondportal.com is hopeful that this application will be approved in the near future.
Commenting on the Commonwealth Bank's decision to join, asiabondportal.com's CEO Francis Tjia said : " We are very pleased to be welcoming the Commonwealth Bank to our roster of strategic partners and shareholders. It has been our aim from the outset to launch our trading system in the fixed income markets throughout Asia Pacific. The decision by the Commonwealth Bank to join our platform puts us on track to launch trading of AUD and NZD instruments through asiabondportal.com later this year. Working together with the Commonwealth Bank is an exciting new step for us that will expand our trading capabilities beyond our current product range of US dollar, Japanese yen, Hong Kong dollar, and Singapore dollar fixed income instruments."
Commenting on the value to clients Peter Prowse said "Clients on this site can review current market thinking and trends and then request multiple prices from alliance partners rather than having to make multiple calls around their dealer panel. asiabondportal.com offers a level of price transparency that has not been available in the Asian market. It will revolutionise the fixed income market in Asia and beyond. The Commonwealth Bank is pleased to again be the first bank to deliver Australia and New Zealand's Fixed Income product and research into what is already the leading Asian securities B2B platform."