The Korea Exchange (KRX) has won a deal to supply and implement an electronic bond trading system to Bursa Malaysia Berhad (Bursa Malaysia) which will be based on its own elctronic trading technology.
The new elctronic trading system will be customised for the Malaysian bond market and will include order matching, trade negotiation, trade reporting, surveillance and price dissemination functions, aimed at improving the liquidity of the secondary bond market.
KRX and Bursa Malaysia say they intend to collaborate on developing the bond market in the region, in addition to working together on financial derivatives products.
Dato' Yusli Mohamed Yusoff, CEO of Bursa Malaysia, says KRX's technology was chosen "because of KRX's presence in Asia as a leader in the Asian bond market and also its system's proven efficiency".
Young-Tak Lee, chairman and CEO of KRX, adds: "With the development of the first bond trading system across Korea's border, KRX expects to initiate more technology-related projects outside Korea."
Following completion of the Malaysian project - which is expected within 12 months - KRX says it, along with its IT subsidiary Koscom, will target firms the Middle East, Central Asia and South America.