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General Questions
What is a BondbloX?
BondbloX represents fractional bonds issued by BondbloX Pte. Ltd., traded on the BondbloX Bond Exchange, and contains fractional interests in the Underlying bond.
How is BondbloX Bond Exchange different from other bond dealers, platforms, and venues?
We do not act as a principal, nor trade on the exchange. This ensures that we remain neutral to all parties on a fair and transparent ecosystem.
Structurally, BondbloX works entirely differently from traditional bond markets, as it uses an exchange model for all-to-all order matching. This contrasts with the over-the-counter model that currently exists with phone dealers servicing individual investors.
For fractional trades, 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 in fractions.
How can BBX charge lower fees than other banks and financial advisors?
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.
What is the key difference between BondbloX and a regular bond?
The key difference lies in the minimum denomination of BondbloX, which is 1,000, rather than 200,000 or 250,000. 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.
What kind of bonds can be converted into BondbloX?
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.
Regulatory
Is BondbloX Bond Exchange (BBX) a regulated market?
Yes. BBX is operated by BondbloX Pte. Ltd., which is an entity incorporated in Singapore and regulated by the Monetary Authority of Singapore as a Recognised Market Operator under the Securities & Futures Act 2001 of Singapore.
More details can be found on MAS’ Financial Institution Directory: https://eservices.mas.gov.sg/fid/institution/detail/235437-BONDBLOX-PTE-LTD
What is the product classification of BondbloX under the Securities & Futures Act 2001 of Singapore (SFA)?
BondbloX is a debenture within the definition of securities in the SFA.
Who is eligible to open a membership account on BBX?
The BondbloX Bond Exchange is licensed to deal with Expert, Professional and Accredited Investors (each term as defined in the Rulebook) directly.
There are selling restrictions that may apply depending on jurisdiction. For further details, please contact us to find out more.
What are the definitions of "Accredited Investor" and "Expert Investor"?
According to Section 4A(1)(a) of the Securities and Futures Act 2001 of Singapore (“SFA”),
“Accredited investor” means
- An individual —
- (A) whose net personal assets (see footnote 1) exceed in value $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- (B) whose financial assets (net of any related liabilities) exceed in value $1 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount, where “financial asset” means —
- (i) a deposit as defined in section 4B of the Banking Act 1970;
- (ii) an investment product as defined in section 2(1) of the Financial Advisers Act 2001; or
- (iii) any other asset as may be prescribed by regulations made under section 341; or
- (C) whose income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- A corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by —
- (A) the most recent audited balance sheet of the corporation; or
- (B) where the corporation is not required to prepare audited accounts regularly, a balance sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance sheet, which date must be within the preceding 12 months;
- The trustee of such trust (which includes a bare trust) as the Authority may prescribe, when acting in that capacity. Such persons are:
- (A) the trustee of any trust all the beneficiaries of which are accredited investors within the meaning of Section 4A(1)(a)(i), (ii) or (iv) of the SFA;
- (B) the trustee of any trust all the settlors of which:
- (i) are accredited investors within the meaning of Section 4A(1)(a)(i), (ii) or (iv) of the SFA;
- (ii) have reserved to themselves all powers of investment and asset management functions under the trust; and
- (iii) have reserved to themselves the power to revoke the trust; or
- (C) the trustee of any trust the subject matter of which exceeds S$10 million (or its equivalent in a foreign currency) in value; or
- Such other person as the Authority may prescribe as accredited investors. Such persons are:
- (A) an entity (other than a corporation) with net assets exceeding S$10 million (or its equivalent in a foreign currency) in value;
- (B) a partnership (other than a limited liability partnership within the meaning of the Limited Liability Partnerships Act 2005) in which every partner is an accredited investor;
- (C) a corporation, the entire share capital of which is owned by one or more persons, all of whom are accredited investors; or
- (D) a person who holds a joint account with an accredited investor, in respect of dealings through that joint account.
[Footnote 1] In determining the value of an individual’s net personal assets for the purposes of above Section (1)(A), the value of the individual’s primary residence —
- (a) is to be calculated by deducting any outstanding amounts in respect of any credit facility that is secured by the residence from the estimated fair market value of the residence; and
- (b) is taken to be the lower of the following:
- (i) the value calculated under paragraph (a);
- (ii) $1 million.
According to Section 4A(1)(b) of the SFA,
“Expert investor” means
- A person whose business involves the acquisition and disposal, or the holding, of capital markets products, whether as principal or agent;
- The trustee of such trust as the Authority may prescribe, when acting in that capacity; or
- Such other person as the Authority may prescribe.
All the above definitions may be subject to such modifications as the Authority may prescribe for any specified provision of the SFA.
Do you give investment advice or participate on BBX?
No, we are not licensed to give investment advice. We are also not allowed to participate on BBX.
Is BondbloX linked to any cryptocurrencies?
No. BondbloX is a debenture within the definition of securities in the SFA and is not linked to any cryptocurrencies.
[For non-institutional Singapore residents] I/We have opted and consented to being treated as an Accredited Investor (as defined in the BBX Rulebook). Do I/we have the right to withdraw this consent and how can I/we do so?
Yes, you have the right to withdraw your consent by notifying BondbloX Pte. Ltd. in writing using the Opt-In Withdrawal Form. Within fourteen (14) Singapore business days from its receipt of such written notification, BondbloX Pte. Ltd. will cease to treat you as an Accredited Investor. You will be notified by BondbloX Pte. Ltd. accordingly.
Consequent upon your withdrawal to be treated as an Accredited Investor, BondbloX Pte. Ltd. reserves the right to terminate its relationship with you and/or carry out such acts as it determines to be necessary to comply with applicable laws and regulations without any liability to you.
Can I nominate a beneficiary for my account?
No, this is not an applicable concept for BBX accounts.
What happens to a joint account in the event of death of one joint account holder?
Upon death of an account holder, the estate should notify us at bondblox@bondblox.com with supporting documentation (such as death certificate). The right of survivorship, prima facie, operates and the remaining surviving holder(s) may operate the joint account, subject to BondbloX Pte. Ltd.’s discretion to temporarily suspend access to the joint account if necessary. For details, please refer to the Joint Account Annex attached to the joint account application form.
What happens to my account in the event of my death?
Upon death of an account holder, the estate should notify us at bondblox@bondblox.com with supporting documentation (such as death certificate). Upon receipt of such notification, access to the BBX account will be temporarily suspended pending appropriate instructions from verified legal representatives of the estate.
Can I open a joint account with more than 2 joint account holders?
Yes. All account holders will be subject to our customer due diligence and must still meet the relevant admission eligibility criteria. Only the Principal Account Holder may operate the BBX account. For details, please refer to the Joint Account Annex attached to the joint account application form.
About BondbloX Investments
Where and how are my assets (ie. cash and underlying bonds) kept?
All cash and underlying bonds deposited with BondbloX Pte. Ltd. are separately custodised with independent third party global bankers and custodians - Northern Trust and Citibank.
The deposited cash and underlying bonds are held by BondbloX Pte. Ltd. as bare trustee for the relevant Holders (defined in the Deed Polls) pursuant to the Deed Polls. Each Series of Deposited Bonds shall be subject to a separate trust and events affecting one Series shall not affect any other. BondbloX Pte. Ltd. shall not be beneficially entitled to such deposited cash or underlying bonds.
For further details, please refer to the relevant Deed Polls as well as Rule 14.12 of the Rulebook.
Are my funds placed with BBX segregated from BondbloX Pte. Ltd.’s monies?
Yes. All cash deposited with BondbloX Pte. Ltd. are segregated from BondbloX Pte. Ltd.'s own monies without co-mingling, and custodised with independent third party global bankers - Northern Trust and Citibank.
Who are your Designated Bankers and Custodians?
Our Designated Bankers and Custodians are currently Northern Trust and Citibank.
Who is a Digital Custodian on BBX?
Citibank is the first Digital Custodian on BBX.
What are the risks in investing in BondbloX?
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 BondbloX Pte. Ltd.
BondbloX Pte. Ltd. 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.
Do I get voting rights with BondbloX?
No, you do not get voting rights, even on a fractional basis, on the underlying bond.
What happens to my BondbloX investment if an Insolvency Event (as defined in the Rulebook) occurs?
If you are a Member Participant Client and an Insolvency Event occurs in respect of your Direct Agent Member Participant, then you must look to the liquidator or administrator of your Direct Agent Member Participant in relation to your rights arising under the BondbloX.
If an Insolvency Event occurs in respect of BondbloX Pte. Ltd. (the “Company”), your BondbloX assets remain segregated from the Company’s own monies and assets. All cash and underlying bonds deposited with the Company are separately custodised with independent third party global bankers and custodians – Northern Trust and Citibank. The Company, acting as the bare trustee over such deposited cash and underlying bonds pursuant to the Deed Polls, is not beneficially entitled to these deposited cash or underlying bonds. A Direct Member Participant may take direct enforcement against the Company for the transfer of the underlying bond (or the value thereof) and cash allocated to them in the Distributed/Master Ledger. A Direct Agent Member Participant will in turn transfer to its Member Participant Clients based on their respective proportionate entitlements as beneficially held by such Direct Agent Member Participant.
For further details, please refer to the relevant Deed Polls as well as Rule 14 of the Rulebook.
Trading & Funding Mechanics
What is my unique BondbloX account ID?
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.
Is there a fixed or minimum amount I need to invest?
The denomination for a BondbloX is 1,000. For trading under the fractional window, users may trade from a minimum of 1,000. For trading under the regular bond window, users may trade from a minimum of 200,000 or 250,000. There is no minimum trading activity required to maintain the account.
Do I need to fund my account before I can trade?
Yes. 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 used for further trades while the existing order remains open.
For market counterparties, separate conditions apply.
What are the trading windows available on the BondbloX Bond Exchange?
The BondbloX Exchange currently supports two trading windows: (i) Fractional bond trading window, and (ii) Regular bond trading window.
If both trading windows are available for one BondbloX, am I trading the same instrument? Can orders placed on one trading window match against orders in other trading windows?
Regardless of the trading window, the instrument traded is the same ie. BondbloX. There are different settlement cycles, processes, order types and minimum ticket sizes allowed under each trading window.
Orders in one trading window cannot be matched against orders from other trading windows.
I would like to buy 200,000 notional of BondbloX. Which trading window should I use and what should I be aware of?
The regular bond trading window will execute the 200,000 as one single order, whereas the fractional trading window will accommodate partial fill, such that it settles in clips of 1,000.
Since the trading windows are separate, the prices available on each window may also be different. The settlement cycles are also different for different trading windows.
What are the types of orders I can place?
The exchange supports the following order types for each trading window. Please note partial fills are allowed.
| Bond Trading Window | Order Types |
| Fractional | Market*, Limit |
| Regular | Market, Limit |
*Market orders are Fill-and-Kill in the fractional bond trading window..
What are the applicable settlement cycles for BondbloX trades?
The applicable settlement cycles differ based on the transacted trading window. The below table displays the settlement timelines associated with each trading window.
| Trading Window | Settlement Timeline |
| Fractional | Instant |
| Regular Bond | T+1 and T+2 |
Is there a maximum order validity window for my orders?
All orders that remain open for longer than 14 days automatically expires.
How do I fund my account?
Please refer to the step-by-step guide.
What currencies can I fund into my BondbloX account for trading of BondbloX?
BBX accepts funding of US dollars (USD), Singapore dollars (SGD), Sterling (GBP), Australian dollars (AUD), Canadian dollars (CAD), Hong Kong dollars (HKD), Japanese Yen (JPY) or Euros (EUR) into your BondbloX account. Except in the case of Synthetic-Settled BondbloX, the settlement currency of the trades will be in the same currency as the denomination of the BondbloX.
What is the security identifier for a specific BondbloX?
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.
How do I receive coupons on my BondbloX?
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. BondbloX Pte. Ltd. does not deduct any fees from coupons.
Does BBX charge fees on deposits and withdrawals?
We do not charge fees on any incoming or outgoing transfers made to/from BondbloX Pte. Ltd. However, fees may be levied on funds by corresponding banks and/or financial intermediaries, which are not accrued to BondbloX Pte. Ltd.
Fractional Trading Window
How do I purchase a bond in the fractional trading window?
- Fund your account
- Submit your order under the fractional trading window
- Once your order matches against another order, it will automatically settle and your holdings will be updated.
Where do my orders route to and with whom am I trading against?
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.
What is the settlement process for fractional bond trades?
Matched trades under the fractional bond trading window settles instantly and automatically. No further action is required.
Can I cancel an order?
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.
Full Bond Trading Window and External Delivery
What is the regular bond trading window and how does it work?
The regular bond trading window allows members to access interbank liquidity via Market Counterparties. Subject to the terms of the Rulebook, Market Counterparties are not required to meet the pre-funding requirement for orders, and post-trade settlement timelines for regular bond trading window follows a standard T+2 cycle.
Who can be a Market Counterparty?
A Market Counterparty must be a financial institution trading as a principal, must meet the eligibility criteria of a Member Participant as set out in Rule 4, and must be approved or appointed by BBX as a Market Counterparty.
How do I purchase a bond in the regular bond trading window?
- Fund your account
- Submit your order under the regular bond trading window
- Once your order matches against another order, it will determine if there is an external delivery required for your matched trade.
- If there is an external delivery, BBX will work with the relevant Market Counterparty to complete the delivery process.
- On T+2, when the delivery has been completed, the BondbloX trade will automatically settle and your holdings will be updated accordingly.
What happens to my order once I have placed it in the regular bond window?
- First your order will attempt to match against existing orders in the orderbook.
- When no match is found, all Market Counterparties will get notified of your order. They will tap onto the interbank market for a seller/buyer willing to transact on the underlying bond.
- If there is a willing seller/buyer for the underlying bond, the Market Counterparty will then place an order into BBX to match against your order.
- Once your order is matched, you will receive a notification that the order is matched and is pending settlement.
- Settlement will be processed on T+2.
- If there is no match, your order will expire by no later than 14 days.
Can I cancel my order that has matched?
No, orders that have matched cannot be cancelled. 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.
When I place an order on the regular bond trading window, who is on the other side?
BBX ultimately works as an all-to-all platform. You may trade against any other participant on the platform. For trades on the regular bond trading window, you may be trading against another participant (not necessarily a Market Counterparty) who already has inventory/cash on the platform, or against a Market Counterparty who will fulfill the trade via an External Delivery from the interbank market.
Trading between two Market Counterparties who both perform external delivery on the same trade is currently not supported (please refer to Rule 13.10.3 of the Rulebook).
Why is accrued interest calculated differently for the regular bond trading window versus the fractional trading window?
Accrued interest is always calculated for a specific settlement date. On the order ticket for fractional trades, the form provides the accrued interest amount assuming the order will settle for the same day. On the order ticket for regular bond trades, the form provides the accrued interest amount assuming the order will settle two business days later.
Is settlement of the matched trades guaranteed on the regular bond trading window?
Settlement of matched trades is not guaranteed by BBX and BBX does not bear any liability to any party in the event of T+2 settlement failure. You will be ultimately exposed to counterparty settlement risk of the Market Counterparty involved in your trade.
What happens in the scenario where my bond trades do not settle on the expected settlement date? What recourse options do I have?
In the event the settlement of trades does not occur on T+2 due to a failed or delayed delivery by the Market Counterparty (defaulting counterparty), the defaulting counterparty will usually be expected to remedy and complete the delivery as soon as possible.
The recourse options available to the non-defaulting counterparty are:
- Agree to extend the settlement period; or
- Issue a buy-in notice in writing; or
- Cancel the trade in its entirely.
For more details, please refer to Rule 14.19 of the Rulebook.
Connectivity to BondbloX Bond Exchange via BIFT (for B2B members)
What is BondbloX Interface For Trading (BIFT)?
BondbloX Interface for Trading is a software built by BondbloX 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
What are the exchange fees associated with BondbloX?
Exchange fees, in the following types, may be applied:
- Transaction fee for BondbloX
- Platform access/AUM fee
Other non-exchange fees may apply on deposits and withdrawals
- We do not charge fees on any funding or withdrawal transfers made to/from BondbloX Pte. Ltd. However, fees may be levied on funds by corresponding banks and/or financial intermediaries, which are not accrued to BondbloX Pte. Ltd.
For further information, refer to our market information page.
How are the fees calculated?
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 monthly or 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 our market information page.
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.