New order in the government bond market is now 20 years old
From dematerialisation to inclusion in global indices, dealing in debt has come a long way
South Africans were able to cast their vote on April 27 1994 to mark the end of apartheid rule and establish a new constitutional order. Exactly 20 years ago, and quite unremarkably, another new order was established in the government bond market. In April 1998, the Treasury appointed primary dealers to provide liquidity and distribution of government debt. With the benefit of hindsight, three factors provided the impetus for this new order. First, the establishment in 1983 of the International Organisation of Securities Commissions led to the objectives and principles of securities regulation that are now accepted by 115 jurisdictions, of which nearly 75% are in emerging markets. Second, the report in 1988 by the Jacobs committee on the market for public sector securities (appointed by the finance minister in January 1987) set in motion a number of important developments for the bond market. Most important were the subsequent establishment of the Financial Markets Advisory Board, t...
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