ZAP // IGCP
New public debt instruments are aimed at small investors. It aims to promote greater liquidity and market access.
The Lisbon Stock Exchange is preparing a new offer of public debt instruments aimed at small investors, in order to create an alternative to traditional Savings Certificates and respond to the growing demand for investment options in long-term securities.
The main objective of the project, led by Euronext Lisbonis to promote greater liquidity and market access.
Isabel Ucha, CEO of Euronext Lisbon, explains to this Thursday that the exchange is already working on launching derivatives based on State bond indices. These include futures, options, ETFs and certificates.
“Euronext has just launched a family of indices on the price of government bonds from several countries”, says the CEO, based on data from the MTS trading platform, acquired by Euronext in 2021, and “which includes debt Portuguese”.
The offer is also to be expanded in corporate debt, through the development of the “bond vision” market — a market “targeted at corporate debt”, he explains.
Supplement to savings certificates
In the same newspaper, the Treasury and Public Debt Management Agency (IGCP) recognizes the positive impact of the project.
“All platforms that facilitate retail investors’ access to the market are positive, as promote liquidity and the greater participation of the retail market in sovereign debt”, says an official source to the newspaper, in addition to expanding the offer to international markets.
But the agency points out: new products will not compete directly with savings certificates. They are a complement.
The demand for public debt instruments has been growing in Portugal, especially due to savings.
They continue to be the main choice for families, but the new proposed products offer superior returns over longer periods, which could be a “gig” for investors willing to face greater risk.
