Following recent disruptions in the financial markets together with acceleration of digitisation in debt capital markets, ICMA’s Bond Data Taxonomy (BDT) Working Group announced the launch of consensus for representing key bond information to promote automation and reduce the risk of fragmentation across the issuance process. ICMA’s Bond Data Taxonomy Pack includes machine-readable definitions of key fields, expected values, and relevant ISO elements, as well as examples and a user guide that benefits all issuers, banks, investors, service and technology providers laying a foundation for leveraging new technologies and market innovative solutions.
NowCM is a contributing member of ICMA’s Bond Data Taxonomy (BDT) Working Group, formerly referred to as the Common Data Dictionary (CDD) Working Group, since its inception.
NowCM has been working on data models for more than seven years designing the most advanced data-model with the largest number of variables for all types of financial products: more than 5,000 variables and over 10,000 business rules built on global standards and best practices to make information trapped in unstructured documents available as machine-readable structured data. Being an open and neutral platform, compatibility with multiple market standards and interoperability between market participants is a key attribute for the platform thereby contributing to the establishment of new standards for primary debt capital markets.
NowCM term sheets are now compatible with ICMA’s Bond Data Taxonomy and can ingest the relevant data as well as produce compatible output. All data is further reusable as golden source for other use cases, documents and stakeholders. NowCM is putting this development at the disposal of the market for all stakeholders to join the journey of digitalisation of primary markets and set-up their branded term sheets free of cost. NowCM term sheets can be expanded by the proprietary taxonomy covering additional structures and products fully integrated on NowCM’s platform which allows for enhanced straight-through processing, including the creation of DLT-based bonds and smart contracts.
Users of NowCM’s ecosystem benefit from almost 200 automated final terms of the most frequent issuers, a unique negotiation tool, SWIFT membership and a global community of key opinion leaders in debt capital markets that has adopted NowCM.
Georgina Jarratt, Managing Director, Head of FinTech and Digitalisation at ICMA stated: “The launch of the Bond Data Taxonomy (BDT) is a crucial development in the creation of standards and models, which we have been working on with our membership. Standardisation and simplification of the debt capital markets industry is a key focus for the association to diminish fragmented and unnecessarily complex industry wide processes. The BDT will also help draw together the many technology solutions coming to the market targeting different areas of the bond issuance process. It standardises the key economic terms of a vanilla bond term sheet which will, upon implementation, help reduce fragmentation and facilitate the momentum of the digital transformation in the primary bond markets.”
Robert Koller, CEO and Founder of NowCM added: “We welcome initiatives like ICMA’s BDT which accelerate the digitalisation of capital markets very much. At NowCM we are convinced that the future belongs only to fully regulated and open platforms with many connections that provide the services required by stakeholders. Unregulated island solutions don’t provide the connectivity, interoperability and stability from a capital point of view that their regulated counterparts in financial markets require.”
NowCM is the leading digital solutions and infrastructure provider for the primary debt markets. It provides a unique end-to-end digital solution offering issuers with a digital transaction workflow, or, in the case of new entrants, with a fully regulated CMaaS (Capital Markets as a Service) funding “subsidiary” using standardised documentation and supervised by the CSSF (Luxembourg). The NowCM solution is relevant for both large and small companies and provides improved harmonisation of capital markets in a MiFID II, GDPR and CMU compliant environment, without media breaks. NowCM also owns and operates a multi-lateral trading facility (MTF) which is the world’s first and only primary marketplace, regulated by the ACPR and AMF (France). NowCM, is also a member of Swift.
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