Traders see corporate bonds added to the EGX’s new platform for trading government bonds if they wish to expand the platform’s scope, EGX boss Mohamed Farid told Hapi Journal. Traders would be required to make a formal request to the bourse, which would then explore the matter with the Financial Regulatory Authority (FRA). Minimal amendments would need to be made to the system in order to adapt it for corporate bond trading, Farid said.

What’s this new platform? The new platform is expected to increase trading volumes of government bonds in secondary markets by making trading easier by opening up requests for quotations and using quotation screens to set prices when selling.

How likely are we to see this system implemented for corporate paper? EGX officials have been holding meetings with companies, asset managers and brokers who want to know more about how the new platform works and whether it could be of interest to folks floating (or investing in) corporate bonds. The FRA last month took a step toward that direction by requiring bond issuers tapping the secondary market to allocate at least 10% to retail investors.

It’s a chicken and egg thing: The platform could make the trading of corporate paper easier, but we need some corporate paper to trade for it to be of any interest to anyone…