Nasdaq-listed fintech firm MarketAxess Holdings has launched a fully electronic trading solution for Indian government bonds ( IGBs ) for foreign portfolio investors ( FPIs ).

International investors will, for the first time, be able to trade IGBs electronically alongside 29 other local currency bond markets already available via the MarketAxess trading platform. The new solution will provide both FPIs and market makers with an improved trading experience throughout the entire trade lifecycle, the company says.

“By integrating directly with the NDS-OM system operated by the Clearing Corporation of India Limited, our solution is designed to increase efficiency across the entire trading workflow, from pre-trade allocation to post-trade reporting,” says Riad Chowdhury, head of Asia-Pacific at MarketAxess. 

“Global emerging markets are well-positioned for increased innovation and international investment, as evidenced by India’s recent addition to notable global EM indices, and we are excited to support both with this launch.”

In 2024, MarketAxess reported annual trading volumes of nearly US$860 billion for its emerging markets business.

The launch comes after the Securities and Exchange Board of India ( Sebi ), the country’s markets regulator, eased regulatory requirements for foreign investors who invest exclusively in the country's government bonds.

Foreign investors buying only government bonds will be exempt from disclosing investor group details as these securities carry low risk, according to Sebi.

Foreign holdings in Indian sovereign debt have surged following the country's inclusion in global indices such as the JPMorgan Global Emerging Market Bond Index and the FTSE Russell Emerging Markets Government Bond Index.