Government debt: Japan switches on to e-trading

Electronic trading of Japanese government bonds will account for half of the inter-dealer market by the end of 2006, according to estimates in a report published by research firm Celent.

In 2002 the figure was below 20%: for a country famed for its technological prowess, Japan has been slow to switch from more traditional methods of bond sales to the electronic platforms that are the standard in Europe and the US. The main reason for this lag is all too human: the rise of electronic trading platforms will adversely affect the profit margins of the dealers that are being encouraged to adopt them.

“E-trading tends to increase transparency in a market, “ says Neil Katkov, manager of Celent’s Asia Research group and author of the report.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access