BSE has announced the establishing of a new trading facility XBond as of July 1, 2019. Trading will be launched upon the CEO’s separate resolution. UniCredit Hungary Zrt. is among the first market participants who were granted trading rights on the new platform.
The new facility will be a trading venue for corporate bonds issued within the Bond Funding for Growth Scheme (BGS) program of the Central Bank of Hungary (CBH). Under the project, the CBH will purchase bonds having at least B+ ratings issued by non-financial corporations. The objective of BGS is to promote the diversification of funding to the domestic corporate sector and also to enhance financial stability. Listing of the BGS bonds will be required on BSE’ s newly established XBond platform.
Trading rules of the new MTF will be similar to those applied in the Debt securities section of BSE’s regulated market. The main difference between the two segments is the conditions of listing, since the MTF provides easier access and less administrative burden for bond issuers.
Impact on investors: A new platform for corporate bonds will be launched on BSE. Trading will start upon a separate resolution.