Liquidnet, one of the preeminent worldwide, uncovered its entrance into the debt primary market technology with an electronic revolution that is fundamentally centered on the Liquidnet Debt Capital Markets (DCM). This new deliverable is programmed to release in 2020 and will be entrenched in Liquidnet’s Fixed Income trading environment, known to join the essential and auxiliary markets to Liquidnet’s Members.
It trails a 2-year authentication and configuration process in close partnership with some top-most resource managers and syndicate banks in the European region. Liquidnet DCM is planning to deliver OMS-driven last-mile connectivity to the buy-side for syndicate banks, thereby simplifying the manual procedure in the corporate debt primary market that has witnessed record new issuance of $2.6 trillion in the first half of this year.
This new contribution uses a built-up system of Liquidnet of 1300 or more purchase side corporate bond traders and portfolio directors from more than 5002 asset supervisors, work process consolidation with OMS condition, and the current desktop real estate from the subordinate exchanging space. The outcome is expected to be a real-time electronic exchange of data between syndicate banks, traders, and portfolio managers, encompassing multiple aspects of the new issue life cycle, right from declaration and updates, to OMS-related orders, distribution, and quotation.
Constantinos Antoniades, Global Head of Fixed Income at Liquidnet, shares, “We are very excited about the launch of Liquidnet DCM and the ability to help bring further efficiencies to the primary market. This is a space that can benefit tremendously from more innovation and collaboration by all parts of the ecosystem in order to deliver a seamless best-in-class workflow.”
He adds, “Our solution will provide an OMS-connected workflow, making the process of managing multiple new issues by asset managers more efficient, more automated, and less time-consuming. We are committed to providing the market with an open and interoperable industry solution that is available to all clients and banks in Europe and the US, and we look forward to working with other firms for the benefit of the industry.”
“We have crafted this solution together with asset managers and syndicate banks during more than 20 sessions with our three asset manager working groups in London, Paris, and Frankfurt, and our London-based syndicate bank working group,” states Paul Tregidgo, Senior Advisor with Liquidnet.
Cathy Gibson, Head of Dealing at Royal London Asset Management, says, “There has not been enough focus on innovation in the primary space over the course of the previous decade, it is time to bring more technology into the space to enhance efficiencies across the industry.”
Similarly, Christoph Hock, Head of Multi-Asset Trading at Union Investment, adds, “We are pleased to see key developments taking place in the space as buy-side trading desks need to use smart technology to streamline the new issue management process. Equally important, it is great to see solutions that have been crafted with close co-operation and guidance from the asset management community in Europe.”
“It is important for any primary market solution to be integrated with the OMS platforms used by the buy-side in order to deliver the necessary efficiencies. We welcome solutions that help stitch together the currently fragmented workflow,” said Andrew Munro, Global Head of Fixed Income Trading at Janus Henderson.
“The Fixed Income primary market is in need of automation to increase the efficiency of the debt issuance process for PMs and traders. Technology can help with this,” said Carl James, Global Head of Fixed Income Trading at Pictet Asset Management.