Analysis-Three years after DirectBooks, US bond market still phoning it in

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Wall Street's three-year effort to modernize the way billions of dollars of new corporate bonds are sold via phone, chat message or email, is making slow...

- Wall Street's three-year effort to modernize the way billions of dollars of new corporate bonds are sold via phone, chat message or email, is making slow progress.

DirectBooks, formed by nine of the largest global banks went online in November 2020 to overhaul the opaque practice of selling new investment-grade rated bonds - a process that can be fraught with errors. Interest in automation grew as desks struggled with corporate bond volumes that touched a record $1.78 trillion in 2020.

In contrast, DirectBooks, when fully operational, aims to enable investors to communicate directly to underwriters through its system, making the process more efficient for investors and banks. The buy-side is even more diverse in terms of tech sophistication and appetite for process change, he added.

The API would enable communication, exchange of data and functionality between these systems easily and securely.

 

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Fonte: SaltWire Network - 🏆 45. / 63 Consulte Mais informação »