CB envisages own trading platform for G-Secs within a year

The Bloomberg electronic trading platform was implemented due to the widespread availability of the platform and the time restraints in making the government securities (G-Secs) market transparent, and will be phased out in a year, the Central Bank asserted this week.

“It was the only available system in the country where securities could be traded,” Central Bank Assistant Governor R. A. A. Jayalath said, responding to a question Mirror Business raised on the transparency of the procedure followed in selecting Bloomberg system. 

The initial response by Central Bank Governor Dr. Indrajit Coomaraswamy was bewilderment. “That’s a good question. I don’t know. What are the options that are available? I don’t know is the answer,” he had said.
When queried as to why there were no tenders called from international players as is the norm, Dr. Coomaraswamy said that time had been of the essence in making the market transparent, given the past. He noted that there will be a new system in one year.
“We also wanted to move fairly quickly, to do certain things, but in a year’s time we will have our own trading platform. We’re moving in that direction,” he said.

The popularity of the Bloomberg trading system may have been a main reason as well.
“One, it’s a global system, two as Mr. Jayalath mentioned it was available, and three, it was a given at no cost,” Dr. Coomaraswamy said.

Most of Sri Lanka’s primary dealers had been using the platform. Jayalath noted that this made the enforcement on the remaining primary dealers more feasible and cost-effective, compared to finding a whole other system. (CW)