Sri Lanka to trade repos electronically: regulator

ECONOMYNEXT – Sri Lanka is considering electronic trades for repurchase and reverse repurchase deals in government securities, increasing transparency, the central bank which regulates bond markets said.

Repo and reverse repo deals involving a sale and buy back of bonds, for tenors shorter than the maturity.

All primary dealers and commercial banks carry out outright transactions in Treasury bills and bonds on a platform provided by Bloomberg from August.

Over-the-counter trades above 50 million rupees have to be reported within 30 minutes.

"Accordingly, all stakeholders have now begun to yield the benefits arising from the transparency, price discovery and liquidity created through this trading platform in the market," the central bank said.

The regulator said public price data released will be increased to twice a day from the current once a day.

"As the next stage, the Central Bank is now considering to introduce the repurchase/reverse repurchase transactions to this electronic bond trading platform," the central bank said.

 

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