MarketAxess Expands Global Fixed Income Trading Network to China

By Léandra Monteiro

MarketAxess Holdings Inc, the operator of an electronic trading platform for fixed income securities and the provider of market data and post-trade services for the global fixed income markets, announced the launch of ‘a new trading channel for its global investors to access the Chinese Interbank Bond Market (CIBM). Access is via the connection between CFETS and MKTX under the Bond Connect and CIBM Direct programs, in partnership with China Foreign Exchange Trade System (CFETS) and Bond Connect Company Limited (BCCL).

Global investors on MarketAxess can now trade Chinese bonds onshore through a single, integrated and easy-to-use trading interface.

“This launch is the result of a close partnership between MarketAxess and CFETS which aims to improve the investor experience in the Chinese interbank market,” said Rick McVey, President and CEO of MarketAxess. “I am delighted that together we are able to bring a larger and more diverse participation of global investors to the $ 15 billion onshore bond market, and I am delighted to think of the many collaborative opportunities that lie ahead.

Christophe Roupie, Head of EMEA & APAC at MarketAxess added: “We have seen a 74% increase in our transaction volume in Asia-Pacific in 2020. This success is based on the strategic investments we have made to help the bond markets region to innovate, improve workflow efficiency and attract greater global customer participation. This launch is another important step for our continued international growth. “

Zhang Yi, Chairman of CFETS, said, “As an important financial infrastructure of the Chinese interbank bond market, CFETS is committed to helping global investors invest in the interbank bond market while continuously providing better services. through closer collaboration with global trading platforms. Our partnership with MarketAxess can now offer foreign investors new access to the continental bond market. In the future, the two sides will explore more opportunities to further promote the opening of the Chinese interbank bond market.

MarketAxess clients will be able to trade directly with onshore market makers via CFETS, using already familiar MarketAxess trading protocols such as Request For Quote (RFQ) and List Trading functionality. The addition of the Chinese interbank market extends MarketAxess’ global fixed income trading coverage, which reached $ 669 billion in total credit trading volume in the second quarter. It also strengthens the company’s leadership in emerging market debt, which currently covers more than 27 local currency bond markets and more than 1,800 trading participants through the global Open Trading ecosystem.

“We are delighted with the addition of MarketAxess as a new platform to access the Bond Connect trading link,” said Julien Martin, Managing Director of Bond Connect Company Limited. “We are optimistic that this will further promote improved liquidity alongside increased international participation in the Chinese interbank bond market. We are seeing increased demand for credit assets among foreign investors, and we believe MarketAxess will add significant value in the space.

“We are delighted to see that access to the Chinese onshore bond market has been made easier and more efficient. China presents a huge opportunity for foreign investors. This is especially true for the growing onshore bond market, where continued inclusion in major global indexes helps to spark investor interest, ”said Patrick Leung, Head of Fixed Income and FX Trading APAC. at BlackRock.