Tradeweb, Euroclear and Informa Global Markets (IGM) have partnered to build a solution for syndicated Eurobonds in the primary market.
The solution, expected to launch in Q3 of 2023, aims to improve the way investors access and manage critical pre-pricing data for newly-syndicated Eurobonds by providing security identification and set-up processes.
Many newly-issued Eurobonds currently enter the market without essential information regarding the new bond, including security identifiers and critical deal information. Owing to fragmentation in primary markets, timely and accurate reference and real-time deal data can be delayed.
According to Euroclear, 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, it adds.
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 directly or via Tradeweb鈥檚 existing order management system integrations. This will allow investors to automatically set up their new issue securities and manage their order and allocation process.
Philippe Laurensy, group head of strategy, product and innovation at Euroclear, comments: 鈥淭hrough 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. We are extremely pleased to be working with Tradeweb and IGM on this initiative, which we expect will significantly reduce cost and risk on the buy-side community.鈥�
Enrico Bruni, head of Europe and Asia business at Tradeweb, says: 鈥淲e believe this solution will change the way buy-side investors access essential data for new issues. It鈥檚 another step toward a more automated primary market and building greater and faster connectivity with the secondary market.鈥�
Terry Wilby, managing director of IGM, comments: 鈥淭he previous downstream new issue data set-up and reconciliation process was entirely manual and generated significant execution risk. With this new triparty 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 and internal systems.鈥�
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