(14 July 2022 – Singapore) DBS is encouraging corporate and financial borrowers to self-issue commercial paper direct to debt capital market (DCM) investors while longer-dated bonds will also be accessible soon.
Euromoney reports DBS has taken the boldest step yet in digital DCM with its new platform FIX Marketplace, Asia’s first fully digital and automated fixed-income execution platform.
The platform creates a new primary issuance distribution channel by giving issuers an interface through which they can directly issue their own bonds into the marketplace, without direct intervention from a bank. Investor orders can be made directly, allocation is transparent and the documentation and trade confirmation is quick and digitalised. Many capital markets participants see blockchain as the future, but few want to go all-in on the new technology.
“FIX is the first of many steps in the ambition of the digitalisation of the capital markets. The first steps have been taken, the creation of a platform where issuers, lawyers, investors and other banks can work together directly. We were testing the pipes: short duration, low credit risk, high grade. Then this year we will take the next steps” commented DBS Global Head of Fixed Income, Clifford Lee