After nearly four years of development, NYSE Euronext’s bond trading platform, NYSE Bonds, will launch today, replacing the New York Stock Exchange’s 30-year-old Automated Bond System (ABS).
The rollout follows the Securities and Exchange Commission’s March approval of the NYSE’s request to trade corporate debt, convertibles, foreign bank and government bonds, U.S. Treasury and agency securities, municipals and debt-based structured products.
The platform permits broker-dealer members of the exchange and non-members, such as hedge funds, that have broker-sponsored agreements to trade corporate debt of NYSE-listed companies in a fashion similar to that for equities.
Seven new customers have signed up to use the platform, John Holman, vice president for fixed income at NYSE Group, said last week. The 35 exchange members that use ABS will also have access to NYSE Bonds.
The new system was tested over the weekend after ABS was shut down at 4:00 p.m. Friday.