MarketAxess connects to China via Bond Connect and CFETS

Dan Barnes

Bond market operator MarketAxess has launched a new trading channel for its global investors to access the China Interbank Bond Market (CIBM). Access is via the connection between CFETS and MKTX under the Bond Connect and CIBM Direct schemes, in partnership with China Foreign Exchange Trade System (CFETS) and Bond Connect Company Limited (BCCL).

Global investors on MarketAxess are now able to trade onshore Chinese bonds through a single trading interface.

Christophe Roupie, head of EMEA & APAC at MarketAxess, said, “We saw a 74% increase in our trading volume across Asia Pacific in 2020. That success is built on the strategic investments we’ve made to help the region’s bond markets to innovate, improve workflow efficiency and attract greater global client participation. This launch is another important milestone for our continued international growth.”

Zhang Yi, President of CFETS, said, “Our partnership with MarketAxess can now provide overseas investors with new access to the mainland bond market. In the future, both parties shall explore more opportunities to further promote the opening-up of China’s interbank bond market.”

MarketAxess clients will be able to trade directly with onshore market makers via CFETS, using MarketAxess trading protocols such as Request-for-Quote (RFQ) and list trading functionality. The addition of the China interbank market extends MarketAxess’ leading global fixed income trading coverage, which reached US$669 billion in total credit trading volume in the second quarter. It also helps the firm’s position in emerging markets debt, which currently covers over 27 local-currency bond markets and over 1,800 trading participants through the Open Trading all-to-all ecosystem.

“We are pleased to see that access to the China onshore bond market is being made easier and more efficient,” said Patrick Leung, head of APAC Fixed Income and Foreign Exchange Trading at BlackRock. “China presents an immense opportunity for foreign investors. This is particularly true for the growing onshore bond market, where continued inclusion in leading global indices is helping to drive investors’ interest.”

Stephen Chang, portfolio manager for Asia at PIMCO, also commented, “The expansion of China’s debt market and its continuing inclusion in the world’s leading indices is driving increased investor demand for Chinese corporate and government bonds. We’re very pleased to see MarketAxess offering a simple, integrated way to trade those bonds on their platform, and look forward to the efficiency gains that will bring.”

©Markets Media Europe, 2021