Liquidnet, the agency execution specialist, has achieved the next stage of its electronification of the new bond issuance process, by successfully transmitting live buy-side orders in from Order and Execution Management Systems to participating syndicate banks. The electronic workflow follows the initial testing that Liquidnet Primary Markets conducted earlier this year in collaboration with Invesco Asset Management and Charles River Development (CRD), who were the first O/EMS providers to facilitate the functionality.
“This is a big step,” says Paul Tregidgo, Senior Advisor with Liquidnet. “We’ve now demonstrated the delivery of orders direct from the buy sides’ order management systems to the banks, in the context of live transactions. And there were several participating institutional investors and syndicate involved, looking at how the process works on actual deals.”
Since the launch of the Liquidnet Primary Markets offering, the number of participating banks has grown from 10 to 30+, with coverage on approximately 80% of all European new deal announcements in investment grade, high yield, SSAs, covered bonds and global emerging markets.
Tregidgo emphasises that Liquidnet is following an iterative process. “Now that we’ve demonstrated the delivery of order information to the banks in electronic format, the next step is to work not just with the banks, but with the entire ecosystem, to enable that actionable information to be ingested in the most efficient way possible,” he says.
The key is for participants to be able continue to use existing O/EMSs and not have to modify their workflows, says Tregidgo. “If we can deliver this electronification and improve efficiency with the system almost being invisible, in the background and integrated with the tools of the market, then we’ve done our job,” he says. “That’s the that’s the goal here.”
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