Bloomberg and S&P Global Market Intelligence have launched an integrated solution to streamline the syndicated primary bond market lifecycle. Bond market issuance has historically been a manual process which adds risk and friction for both syndicate banks and investors.
Although multiple solutions to electronify the market have been developed, buy-side traders have explicitly called for interoperability between them, so that fragmentation does not add to the friction. The solution is designed to improve the primary markets workflow by providing market participants with a more efficient way to process orders and allocations. Portfolio managers and traders are provided with an end-to-end primary markets workflow, which includes up-to-date information on new issue securities of interest, electronic order routing and automatic delivery of final allocations.
The collaborative solution connects mutual clients of TSOX, Bloomberg’s fixed income execution management system (EMS) and S&P Global Market Intelligence’s InvestorAccess platform. The linkage between TSOX and InvestorAccess begins with the staging and aggregation of orders from multiple portfolio managers. These orders are electronically routed to InvestorAccess and updated as the new issue security evolves from initial announcement to final terms. This is followed by delivery of the order allocations via straight-through-processing as soon as the syndicate has released them.
Bloomberg users who stage orders into TSOX from their order management system (OMS) should get access to automated security creation, electronic order routing and dynamic order modification and cancellation. In addition, once the orders are filled, the details should then be immediately delivered to a client’s OMS for easy tracking. The synchronisation of the primary market data workflow between both firms is designed to help ensure that traders can exchange pertinent order-level information on new issue securities.
This alignment should allow for free exchange of new issue data by systems supporting the market participants’ trading desks through the syndicate banks’ book building technology. This in turn should minimises the need for proprietary mapping and manual tracking of security information.
“This integration is part of our commitment to making data available to users faster, following the announcement of a new issue. By providing clients a streamlined electronic workflow we’re helping to optimize their interactions within the primary markets,” said Phil McCabe, global head of EMS and analytics product at Bloomberg.
“Bloomberg has continued to invest in this space, and by centralizing new issue workflows, traders are able to combine the best of data and information discovery with efficient and inter-operable execution management using TSOX”.
“The synchronisation of the primary market data workflow between both firms aims to ensure that traders can exchange pertinent order-level information on new issue securities,” said Chris Sztam, head of global markets group, S&P Global Market Intelligence.
“The benefit we are jointly providing to portfolio managers and traders will create greater efficiencies across asset classes as capital markets become increasingly electronic.” The DESK
©Markets Media Europe 2023
