Landmark platform created paradigm shift in how investment banks connect on fixed-income primary new issues
Ipreo, a leading global provider of market intelligence and productivity software to both capital markets and corporate investor relations professionals, announced the signing of its 100th member bank to its IssueNet fixed-income new-issue community.
IssueNet provides a syndicate-to-syndicate communications platform for the Fixed Income primary new-issue market. It was launched in 2003 by London-based Marketpipe Ltd (which was acquired by Ipreo in 2006) with the backing of ICMA and a consortium of 18 investment banks. Today, IssueNet is the market standard for running new issues.
IssueNet allows syndicate banks to communicate deal and order details to each other electronically, reducing the risks associated with duplicate orders and enabling banks to build, reconcile and allocate books more quickly. Most banks use Ipreo's market-leading bookbuilding system, IssueBook, to fully integrate to IssueNet, but some banks have also integrated their own proprietary bookbuilding systems. Smaller banks can also access a web-based bookbuilding system built into IssueNet.
The decade since IssueNet's launch has seen dramatic changes in the new-issue landscape, many of which would not be possible without IssueNet. Whereas banks used to exchange order details over the telephone, this information is now sent and received electronically in real time between banks on the deal. Banks are also able to price deals earlier than they used to; previously many deals were left open overnight, whereas nearly all deals are now able to price the same day. The size of deals, and of syndicate groups, has increased over time and IssueNet has enabled more banks to collaborate on a deal without the risk this would have involved before. Since 2006 the average size of syndicate group on IssueNet has doubled from 2 to 4 banks.
"It's not an overstatement to say that IssueNet completely changed the way that fixed-income deals are done in the primary market," said Allen Williams, EVP and Managing Director of Global Fixed Income for Ipreo. "Over 80% of global Euro new issuance, as well as 80% of Asia G3 new issuance, is now run over IssueNet."
IssueNet is a global service with deals being run by syndicate desks in all regions. Originally launched in Europe, the service was successfully expanded to Asia in 2013, and a US domestic launch is currently underway with a number of tier-one investment banks on board.