Most clients set up to trade in Indian bonds before index inclusion: JP Morgan
Ahead of India’s inclusion in the JP Morgan GBI-EM Global Index Suite, the majority of the clients of the index have their accounts set up to trade in Indian government bonds, with any “teething issues” related to operational readiness rather than barriers to entering the local market, Gloria Kim, Managing Director, Global Head of Index Research & Co-Head of Global ESG Research, J.P. Morgan, said to ET. Edited excerpts:
Ahead of India’s June 28 inclusion in the GBI-EM Global Index Suite, how have operational metrics evolved in the country’s bond markets? Are global clients prepared for the process?
Gloria Kim: Based on the annual Index Governance Consultation process, market feedback so far has been largely positive. Majority of our clients already have their accounts set-up to trade in the IGB market. Moreover, we see positive market momentum as there are now several India-focused Bond ETFs and UCITs funds offering intra-day liquidity. As always, there are still teething issues when entering a new market, however we have found these to be related to mostly operational readiness and flexibility of counterparties and custodians rather than barriers to entry.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIIM LucknowChief Executive Officer ProgrammeVisitIIM LucknowChief Operations Officer ProgrammeVisitWhat were the key considerations that prompted JP Morgan to make the decision after years of talks with Indian authorities?
