Post-trade services group Clearstream has launched an application programming interface (API) for primary market issuance of Eurobonds in a move designed to bring more digital capability to the fixed income market.
According to Clearstream, the Primary Market Issuance API will enable issuer agents and market participants to obtain international securities identification numbers and request acceptance of securities in real-time.
This in turn will enable straight-through-processing and decrease latency and operational risk, states Clearstream.
London-based fintech Origin Markets will be the first platform to use the API interface.
“Origination and pre-issuance processes are undergoing rapidly evolving technological change which is presenting the securities issuance community with the opportunity to provide fully digital services,” said Guido Wille, head of Eurobonds at Clearstream.
The bonds market has typically lagged behind the equities market in the adoption of digital technology, however the pace of development has picked up of late with a number of projects looking at how tokenisation and blockchain technology can be used for the trading and settlement of securities.
Europe’s securities regulator Esma announced a consultation project on this issue earlier this month.
However, not every fixed income technology project has proved successful. Katana Labs, the fintech venture launched by Dutch bank ING with the mission of providing advanced bond analytics powered by machine learning algorithms for buy-side investors, has announced that it will cease operations at the end of the month just two years after launching.