Bursa plans retail bond issue in H2

Bursa Malaysia Bhd plans to come out with a retail bond issue especially for retail investors in the second half of
2012.

CEO Datuk Tajuddin Atan said the exchange-traded bonds could be bought through brokers just like equities. It would offer stability to retail investors and enable them to have exposure to interest rates, he said.

"Bonds are always traded on the over the counter (OTC) market and the participants have always been institutionals.

"My thinking is that, why not offer to retail investors that have more transparency and that can create liquidity and can give stability," he said after Bursa Malaysia's 35th annual general meeting here today.


He said the exchange was going through several issues and was looking at issuing the bonds in the second half of this year after putting a few things in place.

Tajuddin said the retail bond issue would see Bursa Malaysia offering another asset class that would allow investors to switch from equity to a debt instrument.

"I think one of the key issues that Bursa wants to do is to enhance investors' capability and knowledge as their portfolio would cover not only equity but a debt instrument that has exposure to interest rates with the launch of the retail bond," he said.

He said Bursa Malaysia was also looking at introducing futures and option products. -- Bernama