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Banks team up with FinTech firm to launch electronic bond platform

BNP Paribas, Soc Gen, Credit Suisse and BAML among those involved with launch of new bond platform.

By Hayley McDowell hayley.mcdowell@strategic-i.com January 09, 2017 11:27 AM GMT

Six investment banks have partnered with FinTech firm Origin to launch an electronic trading platform for the €1 trillion private placement bond market.

BNP Paribas, Bank of America Merrill Lynch, Societe Generale and Credit Suisse are among the banks involved with the project, which is currently in the beta-version launch phase.

Origin said its platform simplifies issuance in the medium-term note private placement market by acting as a central information source.

It allows dealers to receive targeted funding levels from issuers on a single platform and allows users to foster new relationships through cloud-based technology and bank-grade security.

“[Issuers] can optimise their funding using the built-in cross-currency pricer, comparing their funding levels to their own and their peers' levels in the secondary markets,” Origin said.

Joakim Holmstrom, head of funding at Municipality Finance, explained the platform makes the medium term note process more efficient and provides access to a broader pool of dealers.

Ben Powell, head of funding for IFC, added that Origin’s platform “simplifies what was once a manual process prone to inefficiency. It allows us to manage our dealer communication in one central place."

The firm’s chief executive officer, Raja Palaniappan, added a healthy pipeline has already built up for 2017 and the platform’s full launch is expected later this year.