The amount of local currency bonds outstanding in emerging East Asia has grown sharply from less than US$1.0 trillion at the end of 2001 to US $6.5 trillion at the end of 2012.
However, there still remain various issues to be addressed. For example, the region's bond market is still small in size due to the continued dominance of the banking sector, regional resource channeling needs to be further enhanced, volatile capital flows must be appropriately managed, and there is a need to improve market efficiency.
For a more efficient discussion on implementing cross-border straight-through-processing and streamlining regulations and market practices, the ASEAN+3 Bond Market Forum was established in 2010 to foster standardization of market practices and harmonization of regulations relating to cross-border bond transactions in the region.
The bond markets and infrastructures in the region are rapidly developing by adopting international standards and principles, the efforts toward harmonization and standardization of ASEAN+3 bond markets have only just begun.
The ASEAN+3 Bond Market Forum aims to discuss various bond market issues in order to enhance the mobilization of regional savings for regional investments, and to improve information flow in regional markets.
The ASEAN+3 Bond Market Forum consists of two forums: Sub-Forum 1 (SF1) and Sub-Forum 2 (SF2). The objective of SF1 is to close the information gap in regulations, market practices, and other areas in the region's bond markets. SF2 focuses on enhancing regional straight-through-processing through the harmonization of transaction procedures and standardization of messages.
The report is the product of the collaborative efforts of the national members and experts and international experts of the ASEAN+3 Bond Market Forum in cooperation with ADB's Office of Regional Economic Integration.
This report is the outcome of a regional technical assistance project, RETA 8049: Harmonization of Bond Standards and Market Practices in ASEAN+3: Support for ASEAN+3 Bond Market Forum, Phase 2 under the ASEAN+3 Bond Market Initiative.