Our focus on client value creation compels us to connect
The global primary bond markets print in excess of $20 trillion per year and their importance to our economies cannot be overstated. During this period of increasing inflation, rising interest rates and pronounced geopolitical uncertainty, the continued functioning of global primary debt markets is even more important. Against this backdrop, the ongoing digital megatrend plays both an important anti-inflationary role, as well as an increasingly important part in defining a company’s or nation’s competitive positioning going forward.
The pandemic has brought about an acceleration of the digitisation of most business processes across most industries. NowCM and BondAuction are two leading pioneers in the digitalisation of primary bond markets, each one tackling complementary parts of this value chain.
In the pursuit of digital value creation, media breaks in workflows have the potential to significantly reduce the benefits of digitalisation. BondAuction and NowCM seek to broaden the scope of their individual services as well as to collectively accelerate the market adoption of digital solutions for the primary debt markets. Today, we are delighted to announce that we will establish connectivity between our platforms and, thereby, offer best-in-breed connectivity for our respective clients and users.
From the horse’s mouth
Robert Koller, CEO and Founder of NowCM, said:
NowCM offers access benefits to new and infrequent issuers through its regulated treasury solutions, transaction process benefits for issuers and dealer banks through its digital documentation and workflow solutions, as well as price discovery benefits through its regulated marketplace. The achievable benefits are significant, but we can always do more. In doing so, we collaborate with carefully selected best-in-class partners. Our collaboration with BondAuction reflects both a detailed mutual understanding of this value chain and a shared ambition to serve our clients and users in the best and most complete way possible. In the following year we foresee more connections to be revealed providing an inclusive ecosystem and reliable digital connectivity.
Peter Charles, Co-Founder of BondAuction commented:
BondAuction focuses on the execution portion of the issue lifecycle; delivering efficiency, transparency, and clarity for issuers, underwriters and investors alike. Whilst the benefits of the BondAuction platform are significant to all parties, they are magnified when coupled with best of breed solution providers focused on other elements of the lifecycle. The resulting end to end solution delivers greater benefit than any individual provider offers. We look forward to furthering our collaboration with NowCM.
Initial areas of collaboration
NowCM and BondAuction will initially connect on the below-mentioned workflows. Going forward, and depending on the wishes of our clients, this connectivity may be broadened to additional modules and services.
Two-way workflow and data connectivity between NowCM’s documentation solutions and the auction-based orderbook of BondAuction. Ability for NowCM’s MTF investors to participate in transactions hosted by the BondAuction platform.
Optionality for issuers to simultaneously explore both the traditional orderbook process using NowBooks and, subject to issuers funding objectives, the efficient and transparent auction-based bid book using BondAuction.
BondAuction provides an auction platform for the Primary Debt Capital Markets, ensuring significant improvements in the new issue process benefitting issuers, underwriters and investors. Building on over 75 years’ experience amongst the principals in running new issues and delivering transformational technology, the BondAuction product is a transparent, efficient, and secure platform for issuers and underwriting banks to auction primary debt transactions and connect to institutional investors.
NowCM is the leading digital solutions and infrastructure provider for the primary debt markets. It provides a unique end-to-end digital solution where companies can offer established issuers with a digital transaction workflow, or, in the case of new entrants, with a CMaaS (Capital Markets as a Service) funding “subsidiary” using standardised documentation. The NowCM solution is relevant for both large and small companies and provides improved harmonisation of capital markets in a MiFID 2, GDPR and CMU compliant environment, without media breaks. Following the acquisition of the majority of NowCP, in France, NowCM owns and operates a multi-lateral trading facility which is the world’s first and only primary marketplace, regulated by the ACPR and AMF (France). NowCM, is also a member of Swift.