Tradeweb, Euroclear and Informa Global Markets announce collaboration to automate the security identification and set-up process in the primary market
Collaboration Tradeweb, Euroclear and Informa Global Markets
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 set-up 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 set-up 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 set-up 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.
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.
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.
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future performance and our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of results or developments in future periods.
Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.
"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"
Philippe Laurensy, Group Head of Strategy, Product Management and Innovation, Euroclear
Contact us for information on Euroclear, including recent corporate developments and new Euroclear products and services, or to arrange interviews with our experts.