Processes in the traditional bond market are old-fashioned. The entire process, from inception to issuance, settlement, and secondary trading, remains manual, especially the first two parts, making it not only vulnerable to disruption but also long overdue for a change.
To bring these traditional bond markets into the digital era, numerous initiatives have been put forth. As everyone can see, a digital solution should offer greater efficiency and convenience. A Digitalized FIX Marketplace Asia’s first completely digital and automated implementation platform, introduced by a popular investment bank in Singapore, DBS is one new system with an effective chance of succeeding.
This platform allows issuers to submit their bonds directly to the market without the direct involvement of a bank. It is driven by a new main issuance distribution channel where direct investor orders are possible, allocation is transparent, and trade verification is fast and digitalized.
How Does the Financial Information Exchange (FIX) Work?
“Financial Information sharing, or FIX is a vendor-neutral digital communication network for the international real exchange of transaction information.” The FIX community includes almost 300 member firms, and the protocol is used by all major investment banks. For pre-trade, trade, and post-trade information exchange as well as for U.S. regulatory reporting, the FIX has taken over as the de facto messaging standard. It works with almost all widely used network technologies. The company was established exclusively to achieve this goal and guarantee the system’s continued availability to the public.
Financial Information Exchange: An Overview (FIX)
Texting and emailing, news, order filings and modifications, securities trading allocations, trade promotion, and execution reports use FIX to communicate. It is used for business-to-business (B2B) interactions and is meant to improve business messaging and transaction flow.
The FIX accomplishes this by reducing redundancy and the time necessary to write messages, exchanges, and documentation. The benefits are obvious to investment businesses and investment banking firms. FIX systems allow securities exchange houses to exchange precise and fast financial data on securities deals.
Advantages of a fully automated, digitalized repair market
The goal of FIX Marketplace is to increase the depth and breadth of the Asian bond market at a faster rate with greater cost and time efficiencies. It also focuses on making capital markets more approachable and supportive for all market participants.
- Bond issuers and investors directly participate in the deal execution process with the help of digitized workflow capabilities to remove obstacles and inefficiencies.
- Issuers can launch deals using the Quick Launch feature in just a few easy steps.
- Trade confirmation and fully automated, digital documentation
- In a digital world, there is a unique first-come, the first-served allocation for price discovery.
- Utilize the appropriate tools and information to make competent funding and investment decisions.
The new platform provides a reasonable chance of achievement, and the digitalized FIX Marketplace gives issuers a digital platform through which they can issue their bonds into the market through a new primary issuance distribution channel. Direct investor orders are possible, allocation is transparent, and trade verification is rapid and automated.
The FIX Marketplace offers a more efficient and approachable way for bond issuers and investors to participate in the deal execution process, with digitized workflow capabilities that remove obstacles and inefficiencies. This digital platform provides a transparent and automated trade confirmation and documentation process, as well as a unique first-come, first-served allocation for price discovery. For more information visit this site.
