Initiative will improve access to critical Eurobond data for investors, enabling more automation of primary markets and streamlining transition into secondary trading
LONDON/BRUSSELS – 12 April, 2023 – Tradeweb, Euroclear and Informa Global Markets (IGM) today jointly announced a collaboration to automate the security identification and setup process for soon-to-be issued syndicated Eurobonds in the primary market. This solution aims to significantly improve the way investors access and manage critical pre-pricing data for newly-syndicated Eurobonds, facilitating further automation of primary markets and a streamlined transition into secondary trading.
Many newly-issued Eurobonds enter the market without essential information regarding the new bond, including security identifiers and critical deal information. Due to fragmentation in primary markets, timely and accurate reference and real-time deal data can be delayed. This hinders market participants from satisfying data requirements to book trades in newly-issued securities. Buy-side investors are often left with the task of finding manual workarounds and face the risk of incorrect orders or allocations.
Through the Euroclear and IGM data solutions, the information describing the new issue, the security identifiers and the deal data will become available on Tradeweb at a much earlier stage in the trade process and on a real-time basis, as a newly-issued Eurobond is marketed and priced. Through Tradeweb, participants will have the ability to consume the collated data shell directly or via Tradeweb’s existing order management system (OMS) integrations with over 480 OMSs and 2,500 clients. This will allow investors to automatically set up their new issue securities and efficiently manage their order and allocation process.
“Through collaborating with our mutual clients, we identified the need to automate the security setup process in the primary market,” said Enrico Bruni, Head of Europe and Asia Business, Tradeweb. “We believe this solution will change the way buy-side investors access essential data for new issues. It’s another step toward a more automated primary market and building greater and faster connectivity with the secondary market.”
“Through this solution, we will address a critical issue for primary market investors around the need for quicker access to reliable new issue deal information for Eurobonds,” said Philippe Laurensy, Group Head of Strategy, Product and Innovation, Euroclear. “We are extremely pleased to be working with Tradeweb and Informa Global Markets on this initiative, which we expect will significantly reduce cost and risk on the buy-side community. As a financial market infrastructure, our role is to bring efficiencies, connectivity and safety to the market value chain from issuers to investors through innovative and sustainable solutions.”
“The previous downstream new issue data setup and reconciliation process was entirely manual and generated significant execution risk,” said Terry Wilby, Managing Director, IGM. “With this new tri-party solution, buy-side clients will have access to trusted, reliable, accurate and timely information on new bonds readily integrated into their OMS, Execution Management Systems (EMS) and internal systems.”
This initiative is an example of how, through open collaboration and partnership, change and innovation becomes increasingly possible in the primary market. This service is expected to launch in Q3 of 2023.
Craig MacDonald, Euroclear + 44 207 849 0315
Richard Kennerley, IGM +44 (0) 7876 684262
Nadine Habib, Tradeweb +44 (0)7917 266 191
About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 65 countries. On average, Tradeweb facilitated more than $1.1 trillion in notional value traded per day over the past four quarters. For more information, please go to www.tradeweb.com.
Euroclear group is the financial industry’s trusted provider of post trade services. Guided by its purpose, Euroclear innovates to bring safety, efficiency and connections to financial markets for sustainable economic growth. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives, and investment funds. As a proven, resilient capital market infrastructure, Euroclear is committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise. The Euroclear group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden, Euroclear UK & International and MFEXbyEuroclear.
About Informa Global Markets (IGM)
IGM is the primary source for live, trusted syndicated bond data and intelligence, and a leading provider of insight on market-moving events in foreign exchange and rates markets. We pride ourselves on speed, accuracy, and flexibility of delivery to a range of clients including banks, fund managers, trading platforms, quant traders and workflow solution providers.
For more information, please visit www.informaconnect.com/igm/
IGM is an Informa Connect business.
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