Commercial Papers are short-term debt financing securities (no longer than 270 days in tenor) consisting of unsecured and discounted promissory notes issued by large corporations with good credit ratings, which can be readily traded. Due to their relatively short maturity period, commercial papers are referred to as low-risk investments, offering competitive returns to investors in compensation for the issuer’s credit risk. Commercial Papers quoted on FMDQ’s platform are quoted on FMDQ and traded on the FMDQ-Bloomberg E-Bond Trading and Surveillance System.
We also publish a Quoted Commercial Papers Status Report to provide updates on all CPs (from live to matured) quoted on the platform, for the benefit of investors and regulators; affording them the requisite information needed to carry out robust and independent risk assessments of any issuer/issue and to effectively monitor activities of the relevant market participants.
Benefits of Registering and Quoting Commercial Papers on FMDQ
- 1. Issuers gain access to a wide range of knowledgeable and capitalised investors (qualified institutional investors & eligible individual investors)
- 2. Liquidity is enhanced through the trading of the securities by FMDQ Dealing Members, improving the ease of entry to and exit from the CP market by investors
- 3. Investors diversify their portfolios and improve the returns on their investment