Electronic Trading In The Swedish Fixed Income Market

On 15 May, interbank trading in the Swedish fixed income market, which today is primarily telephone-based, will become an electronic market. The change is as a result of the co-operation between interbank market participants, the Swedish National Debt Office and the OM Fixed Income Exchange. Trading will be conducted through SAXESS, OM's electronic trading system. The SAXESS platform already handles the information system for telephone-based trading (PMI Prices) and Swedish National Debt Office issues as well as the exchange market for retail bonds.

Electronic trading creates opportunities to reduce transaction costs. This reduces barriers to entry and we have the possibility to attract new Market Makers to the market, which can lead to increased liquidity," says Simon Nathanson, President of the OM Fixed Income Exchange. "We at the OM Fixed Income Exchange, together with the Swedish National Debt Office and the participants in the market, are happy to contribute to the development we now see in the fixed income market, both nationally and internationally.

The electronic market will include the interbank market participants, as of today eight so called Market Makers, that will quote binding two-way prices among each other. In the initial phase prices will be quoted in the ten-year Swedish government bond where after the two and five-year bond will be introduced pending a decision by the Advisory Board of the OM Fixed Income Exchange.

The OM Fixed Income Exchange is a wholly owned subsidiary of OM AB. The OM Fixed Income Exchange is responsible for all fixed income-related operations within OM.

For more information, please visit www.om.se/fixedincome.