Australian Bond Exchange signs agreement with ANZ to pilot ABE’s transaction system utilising its NPP network

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     Australian Bond Exchange has developed a settlement process which aims to reduce
    settlement time of bond trades from T + 2 to near real-time
     A recent set of agreements signed with Australia and New Zealand Banking Group Limited
    (ANZ) is part of a wider industry approach to bring innovation and speed in the settlement
    of financial transactions
     This exciting development is p
     art of Australian Bond Exchange’s broader strategy to eliminate barriers to entry to the
    Over-The-Counter (OTC) bond market for private investors and grow the asset class in
    Australian Bond Exchange Holdings Limited (ASX: ABE) (“Australian Bond Exchange” or “the
    company”) is pleased to announce it has recently signed a set of agreements with ANZ to be part
    of its pilot programs to trial ABE’s transaction and settlement process utilising the New Payments
    Platform (NPP).
    The pilot programs will enable Australian Bond Exchange to test its newly built trading system that
    automates multiple parts of the OTC transaction process, facilitating fast and cost-effective
    transactions and settlement. The objective is to link the transaction system with the NPP which will
    reduce settlement of trades from the current T + 2 days down to near real-time.
    The NPP is an open access infrastructure for fast payments and was launched in Australia in
    February 2018. The NPP was developed via industry collaboration to allow for near real-time funds
    availability to the recipient on a 24/7 basis. The NPP infrastructure supports the independent
    development of ‘overlay’ services to offer innovative payment services to end users.
    The team at Australian Bond Exchange has been working towards incorporating its technology
    and transaction process with NPP since the company launched in 2016. ABE has utilised in-house
    capability and technical expertise and does not anticipate needing costly external IT support to
    make this feature available once proven through the pilot testing phase and they are able to be
    supported by the Australian banks.
    ABE Managing Director and CEO Bradley McCosker said: “Australian Bond Exchange is dedicated
    to delivering innovation that offers a broader set of investors easy access to the OTC bond market,
    breaking down the barriers to entry for retail investors. ABE aims to provide equal access to the
    bond market for everyone, facilitate ease of trading and ensure the highest possible market
    “Access to corporate bonds has typically only been available to institutional and wholesale
    investors, however through its technology and transaction process Australian Bond Exchange is
    making bonds available to all Australians, allowing them to include bonds as a staple in their
    investment portfolios.”
    More information on Australian Bond Exchange’s transaction and settlement process and system
    is available on the ABE website (link)
    – ENDS –


    i hold ABE

    maybe i haven't done my dough here yet

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