Trading

Frequently Asked Questions

BondbloX FAQ

Hi, how can we help?

General Questions

BondbloX represents fractional bonds issued by BondEvalue Pte Ltd, traded on the BondbloX exchange, and contains fractional interests in the Underlying bond.

We firstly do not act as a principal, nor trade on the exchange. Thus, we can maintain neutrality to all parties and primarily work to promote a fair and transparent ecosystem.

 

Structurally, BondbloX works entirely differently as traditional bond markets, as it uses an exchange model for all-to-all order matching. This contrasts the over-the-counter model is currently exists with phone dealers servicing individual investors.

 

Settlement also happens instantaneously on blockchain and participants on the blockchain do not face the usual T+2 or T+3 settlement cycles when trading BondbloX.

By changing the order flows, order matching processes and allowing BondbloX to trade electronically on an exchange model, we have a great efficiency advantage over the current human-dependent over-the-counter model. All these cost savings translate into better prices and lower fees.

No, we are not licensed to give investment advice. We are also not allowed to participate in the market or enter into any transactions as principal.

The short answer is no. The key difference lies in the minimum denomination of BondbloX, which is marked as 1,000. BondbloX also does not have voting rights that a regular bond would have.

 

BondbloX represents fractional interests in the underlying bond and an investor would expect to receive the same payment distribution as the underlying bond. The BondbloX investor also bears the default risk of the underlying bond issuer, no different from the regular bond.

Theoretically, any existing secondary market bond can be converted into BondbloX. However, the BondbloX Exchange will consciously not support all bonds.

The BondbloX universe will expand over time and the general guideline is that the bonds are characteristically what private banking clients would purchase.

No, BondbloX is a debenture and is not linked to cryptocurrencies.

Getting Started

The BondbloX Exchange is licensed to deal with Institutional and Accredited Non-individual Investors directly.

 

Individual investors will be required to onboard with our partners to gain access to BondbloX.

 

There are selling restrictions that may apply depending on jurisdiction. For further details, please contact us to find out more.

The BondbloX Exchange does not service individuals directly. Individuals will have to be onboarded by our partners, in order to gain access to BondbloX. Our current list of partners may be found here.

Connectivity to BondbloX Exchange via BIFT

BondbloX Interface for Trading is a software built by BondEvalue Pte Ltd that allows users to send orders directly to our exchange. It also allows users to manage their bond portfolio, track order statuses and manage their account.

 

For our partners, it has a tiered account management feature that allows Advisors or Traders to support their clients in their trades or trade on their behalf. Our partners are also able to grant their clients an electronic login with view only access or full trading rights.

 

For potential partners interested to develop APIs, BIFT allows us to kickstart our development process and provide interim solutions to grow the engagement in a phase wise manner.

Fees

Exchange fees, in the following types, may be applied:
o Transaction fee for BondbloX
o Quarterly platform access fee on BondbloX held on the exchange

 

Other non-exchange fees may apply on deposits and withdrawals
o This may be imposed by banks and is not accrued to BondEvalue.

Transaction fees are calculated on the total settlement amount for the trade and is applied to both the buyer and seller. Total settlement amount includes an accrued interest portion.

 

Platform access fees are calculated on a percentage basis on BondbloX held on an account. Fees are accrued daily based on end of day balance and deducted quarterly. Fees will be accrued separately for BondbloX denominated in different currencies. Fees do not accrue from cash holdings on the exchange.

 

For the latest fee schedule, please refer to Market Information.

Investments

BondbloX represents fractional interests in the underlying bond. The BondbloX investor bears the default risk of the underlying bond issuer, no different from the regular bond. If the underlying bond defaults, the BondbloX holders may not lay claim on BondEvalue.

 

BondEvalue is currently approved as a Recognised Market Operator (RMO) under the Monetary Authority of Singapore.

 

For further details and other risks, please refer to the BondbloX Information Memorandum.

The minimum denomination for a BondbloX is 1,000. Users may trade in integrals of 1,000. There is no minimum trading activity required to maintain the account.

Yes. All accounts currently work on a pre-fund basis. You need to fund cash prior to placing an order to buy or have the requisite BondbloX prior to placing an order to sell.

 

Sufficiency checks are performed prior to order placement. These holdings are earmarked and may not be use for further trades while the existing order remains open.

Unlike traditional bond markets, BondbloX settles instantly once the order is matched. Settlement occurs on blockchain and we can achieve this because the exchange operates on a pre-fund requirement and blockchain enables atomic swap of cash for BondbloX and vice versa.

BondbloX trades on an all-to-all exchange. All orders route into a central limit order book and are filled based on a price-time priority. Your order may match against any other participant on the network.

The exchange supports both market and limit orders. Partial fills are allowed. Market orders are Fill-and-Kill.

All orders that remain open for longer than 14 days automatically expires.

The exchange currently supports US dollar and SG dollar.

No, the exchange does not currently support currency conversion. To buy USD BondbloX you have to use US dollars, and similarly for SGD BondbloX.

Yes. To place orders for USD bonds, you need US dollars in your account. To place orders for SGD bonds, you need SG dollars in your account.

Yes, you may cancel outstanding open orders. Please note that all transactions are queue for processing on blockchain. There may be a slim but possible instance where your order may be matched prior to your cancellation taking effect.

No, you do not get voting rights, even on a fractional basis, on the underlying bond.

The security identifier for BondbloX contains a prefix “BEX” with the ISIN of the underlying bond. For example, if the ISIN of the underlying bond is XS1298431104, its BondbloX security identifier is BEXXS1298431104.

Coupons are automatically credited to BondbloX holders’ accounts when the payment has reached the exchange. Coupons are determined based on ownership on the record date of each BondbloX. BondEvalue does not deduct any fees from coupons.

Security

All cash and underlying bonds are custodised by our global Custodian, Northern Trust. Ownership of BondbloX is recorded on blockchain and represents definitive ownership of underlying fractional interests in the underlying bonds.

Ownership of BondbloX is recorded on blockchain and the blockchain is maintained by multiple parties each deploying nodes to run consensus and together share the same data. The debentures register maintained on blockchain provides the definitive record of BondbloX ownership.

Your unique BondbloX account ID is a 15-character alphanumeric code that identifies your account on the blockchain. It is used to tie your account with all BondbloX, and cash owned by you on the exchange. You will be issued this account ID after you have been onboarded and after your account is created.