Tradeweb, Euroclear and IGM collaborate to automate primary market security identification and set-up processes

New solution looks to improve access to critical Eurobond data for investors, alongside improving the transition into secondary trading.

Tradeweb, Euroclear and Informa Global Markets (IGM) are collaborating to automate the security identification and set-up process for forthcoming syndicated Eurobonds in the primary market.

The solution aims to improve the way investors access and manage critical pre-pricing data for newly-syndicated Eurobonds, allowing for increased automation of primary markets and an improved transition into secondary trading.

“We believe there is a need for greater connectivity between the primary and secondary markets and that open collaboration is the most effective way to accelerate change,” Serene Murphy, head of corporate development for Europe and Asia at Tradeweb, told The TRADE.

“Further developing and automating workflows in the primary space will help to bridge the two markets and create a streamlined transition for traders to more readily access and utilise electronic tools in secondary.”

“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 at 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.”

Euroclear and IGM’s data solutions will make information describing the new issue, the security identifiers and the deal data 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.

By using Tradeweb, participants will be able to consume the collated data shell directly or through Tradeweb’s existing order management system integrations – allowing investors to automatically set up their new issue securities and manage their order and allocation process more efficiently.

“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 at Euroclear.

The new service is expected to launch in Q3 2023.

Terry Wilby, managing director at IGM added: “The previous downstream new issue data set-up and reconciliation process was entirely manual and generated significant execution risk. 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.”