Clearstream leads innovation in the bond markets by launching a new industry consortium that seeks to resolve historic inefficiencies
Clearstream has developed and leads a new business consortium of Investment banks, Bond Issuers, Data Vendors, Numbering Agents, CSD’s and Asset Managers – all seeking to resolve operational inefficiencies within the international bond market. Now approaching its sixth meeting, the consortium has successfully positioned the changes that can be made and now progresses towards administering such innovations.
Resolving operational and infrastructure inefficiencies
The objective of the new consortium is to work with all members to reduce operational risks and time delays when issuing bonds under the Regulation S or Rule 144A formats. The consortium will also tackle the significant operational challenges that exist when converting between the two structures in the secondary market. The added benefits will increase bond market liquidity, as well as reduce transaction costs and reputational risks for the participants who are affected.
Adrian Dacruz, VP Strategic Market Development at Clearstream and Founder of the new consortium says: “It’s long been known that processing transactions between regulation formats is time consuming and tests the integrity and liquidity of the bond market. We at Clearstream have seeded a collaborative and innovative environment for the bond market to grow into its future state. We all need to work together to encourage industry change at this difficult time.”
Membership to grow
The consortium had its virtual inception in January 2021 and now has representation from over 20 global institutions - from Investment banks, Bond Issuers, Data Vendors, Numbering Agents, CSD’s and Asset Managers.
Next meeting and contact
The next virtual meeting will be held on 6 August 2021 and thereafter every five weeks.
If you participate in the bond market and would like to consider joining, please contact Adrian.dacruz@clearstream.com