The Financial Services Agency has announced plans to develop infrastructure integrating corporate bond price information, with the aim of stimulating trading and supporting corporate funding. In cooperation with industry groups, it will seek to improve the transparency of transaction information and expand the range of bonds covered.
The Financial Services Agency has finalized plans to develop infrastructure for corporate bond information, it has emerged. The aim is to stimulate the secondary market for corporate bonds, make it easier for institutional investors to trade them, and support companies' funding for growth investment.
The Japan Securities Dealers Association currently publishes price, maturity date and interest rate information for some bonds. The plan is to expand the coverage, make transaction information easier to access and improve transparency. The Financial Services Agency will work with industry groups to support the design and development of the information system.
The government included the related funding in its preliminary budget request for FY2027. The initiative is intended to promote more diverse funding sources by expanding the corporate bond market and improving its transparency.
Corporate bonds are a means for companies to raise funds from the market. Investors receive interest, and provided the issuer does not go bankrupt, the principal is repaid at maturity. The government is also pursuing regulatory deregulation to encourage the issuance of smaller-lot, lower-rated corporate bonds.