Bonds Transaction Flow

Bonds@FSM is committed to bringing value to investors, and making your experience with us a breeze when you buy and sell Bonds online with your FSM account.

1 Market Order vs Limit Order

There are 2 types of order available to you when you buy or sell bonds with FSM.

Market Order

Market order refers to your request to buy or sell a bond at the prevailing market price. It is based on the price of the Bond obtained from the Market Dealer when your order is transacted.

Limit Order

Limit Order refers to your request to buy or sell a bond at your preferred price. When you place a buy Limit order, you should indicate the maximum price you wish to buy the bond at. For sell order, you should indicate the minimum price you wish to sell the bond at. Please note that Limit Order may take up to 4 business days to fulfil. After which, the order will expire. We will attempt to match your order and it will be fulfilled as soon as your preferred price is matched with the Market Dealer. If we are unable to match your price during this period, your order will become expired and you may have to place your order online again.

2 Buying Bonds

Enter the quantity of bonds you wish to invest after selecting the Bond you would like to buy. This is also known as Nominal Value of the bond denominated in the Bond’s currency. Next, select your order type – Market or Limit. We will provide an estimated payment amount which is based on indicative transacted amount, indicative accrued interest and processing fee. 3% buffer is also required to cater to changes to the market prices and/or currency conversion.

The different types of payment mode include cheque and Parking facility Fund (PFF) such as Cash Fund, Nikko AM Shenton ShortTerm Bond, and Cash Account. If you have indicated the payment mode as “cheque”, you may make your payment via cheque, Telegraphic Transfer (TT) or Internet Banking. Your buy order will be processed on the same business day when the payment is received before 4pm. If you have indicated to use your monies parked under the PFF, your purchase order will be processed on the same business day when the order is received before 4pm. Your buy order will be transacted only when it is fulfilled with the Market Dealer. A confirmation email with the transaction details will be sent to you. With the actual transacted amount required, any balance from your cheque/TT payment will be deposited into your Cash Account. For payment made via PFF, actual transacted amount will be deducted accordingly.

The diagrams below will highlight and summarize the key points for the transaction flow.

3 Selling Bonds

Enter the quantity of the bond you wish to sell and indicate your order type – Market or Limit. You have the options to receive your redemption amount in cheque (with different currency options) or have it credited into any PFF of your choice. For your reference, an estimated redemption amount will be provided and it includes the processing fee and indicative accrued interest. Your sell order will be processed on the same business day if it is received before 4pm.

The actual redemption amount will be computed only when your sell order is fulfilled and transacted with the Market Dealer. A confirmation email with the transaction details will be sent to you.

The diagrams below will highlight and summarize the key points for the transaction flow.