How a Lack of Standardization Affects Market Efficiency
Primary Debt Markets are notoriously fragmented, which can offer diverse opportunities to market actors.
The difference in terms, such as maturities, currencies or rates, that are found in different sub-markets around the world, allow market actors to pursue offers in the most suitable terms for them.
But today, primary debt market participants are hindered by the fragmentation of these sub-markets. This fragmentation creates multiple inefficiencies, from inconsistent terms and definitions all the way to differences in execution workflows.
Consequently, the absence of shared standards reduces the overall market efficiency and affects liquidity.
In contrast, Nasdaq Primary powered by Onbrane offers integrated solutions, providing single access to liquidity pools globally and increasing proximity between markets and actors.
This way, we help our users consistently exchange and adopt the best market practices through Nasdaq Primary, fueling the improvement of overall market processes that lead to the emergence of better industry standards.
Promoting a Common Vocabulary Across Borders
Today, market participants have different terms for the same financial instruments, metrics and events, which can easily lead to confusion and miscommunication, resulting in delays, increased risk and inefficiency.
The misalignment of key terms is especially visible in the sustainable debt market, which is a relatively new concept, resulting in a very dynamic vocabulary.
Inconsistent usage of terms becomes the most problematic when it comes to cross-border relationships.
In this case, the language difference also comes into play, making it more difficult for market actors to understand and compare information from different countries.
Nasdaq Primary is a powerful catalyst to standardize industry lingo and help issuers, intermediaries, investors, advisors and asset managers quickly align with their counterparts, no matter where they are or what language they speak.
Our users work with a common set of data and tools, increasing the accuracy and consistency of information, which enhances the transparency of their activity and their confidence in one another.
Bringing Best Industry Practices to Nasdaq Primary powered by Onbrane
Primary debt market workflows remain largely manual to this day.
By working in a disconnected environment for decades, issuers, intermediaries and investors worldwide have established different ways of working.
Working closely with public, financial, and corporate institutions of all sizes, we have the luxury of learning how different market actors work around the world.
This allows us to identify best practices and introduce them to Nasdaq Primary.
Ultimately, our user community is the judge. We adjust, refine and implement the workflows that work best for our clients according to their feedback.
Facilitating the Emergence of New Standards
As the only primary debt market platform catering to the entire value chain, Nasdaq Primary enables widespread sharing, dissemination and implementation of best industry practices.
We help enhance proximity for issuers, intermediaries, advisors and investors, providing a hospitable environment for collaboration, iteration and the emergence of new standards.
With Forex and stock exchange markets, for example, we’ve seen huge leaps forward in terms of standardization since the mass adoption of digital solutions started.
With Nasdaq Primary, we strive to help primary debt markets achieve the same.
Get on board with Nasdaq Primary powered by Onbrane
This is just the beginning of the Nasdaq Primary.
Nasdaq and Onbrane teams work together to reinforce Nasdaq Primary’s capabilities and bring more functionalities and integrations to issuers, intermediaries, advisors, and investors so they are equipped with powerful tools that answer today’s demand for security, efficiency, and transparency.
Soon, issuers will have access to more liquidity and more markets, intermediaries will have more issuers and investors to work with and investors will have more investment opportunities. Take action to become part of our exciting journey.
Contact us to discuss the impact that digitalizing your debt issuance through Nasdaq Primary can bring to your organization!
