DCM: how will technology shape the primary markets of the future?

Institutional Investors , Knowledge 27.06.2019
Reading time: 1 minute(s)

The first ICMA (International Capital Market Association) FinTech Forum on 25 June 2019 addressed the question of how technology will affect the international fixed income markets. Fredy R. Flury was a panellist at a high-level discussion focusing on the Debt Capital Market and how technology will shape the primary markets of the future.

The first panel of the event was made up of various European representatives of the capital market. In addition to data specialists and an issuer, other platform representatives from London were also part of the discussion.

In the following, the core statements of the panel will be briefly examined:

  • The automation and standardization of processes and products was very successful in the secondary market. But where do the market participants stand in the primary market? It turns out that in reality, we are further behind and have to invest in development work in order to exploit the great potential.
  • Previously learned processes within the primary market must be rethought, leading to a so-called "unlearning" of existing processes as well as of previously known job profiles.
  • Lessons learnt from other countries and products (MTN, loans) can be considered and applied where possible.

 

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During the forum in London, it became clear that all representatives and participants were focusing on the technology that could be used to achieve a high added value for the customer. When considering the future vision of the capital market, it is important to bear in mind that in reality, we are not yet ready. Many things will change over the next few years and those who do not intensively study new models and processes will presumably be driven out by competition, in which not only banks but also many FinTechs are entering.

With the peer-to-peer platform cosmofunding, we are ideally positioned to serve other markets in the future.