LSEG tests DCM digitization platform developed with Nivaura

Rick Steves

This issuance marks an important milestone in capital markets automation and digitization and demonstrates the potential of such platforms to improve current capital market workflows.

London Stock Exchange Group (LSEG) has tested its new digital primary DCM Flow platform developed in partnership with Nivaura.

The pilot test has proved the paltform’s validity and efficiency as it has successfully processed a $7 billion syndicated issuance by the LSEG under a global MTN programme. The LSEG priced a syndicated multi-tranche and multi-currency offering raising circa $7bn equivalent across nine tranches.

Flow drives end-to-end automation in primary debt markets and is designed to automate the debt capital markets issuance process using structured data and General Purpose Legal Mark-Up Language (GLML), which Nivaura pioneered.

The LSEG issuance is the most complex transaction to use a primary DCM digitization platform as the bonds were listed on the Main Market of The London Stock Exchange, and settled in DTC, Euroclear, and Clearstream.

Nivaura has actively collaborated with regulators and capital market participants as it worked to solve the complex issues around the negotiation and documentation of structured data in the primary markets.

Its digital and automated workflow solutions are designed to be product-agnostic (e.g. between cash-settled products and tokenization) with configurable implementation options including: bespoke, private cloud, or on-premise deployment; customizable functionality and white-labeling; and real-time workflows which adapt in response to external data.

Nivaura pioneered the development of open-source General-purpose Legal Mark-up Language (GLML) to make legal document templates machine-readable, enabling transaction data in the document to be captured as “structured data”.

The human-readable mark-up language designed for easy use by lawyers or other professionals without any programming experience was designed with debt capital market transactions (particularly high volume MTN and CP issuance) in mind but has a much wider potential applicability.

Nivaura’s vision for GLML as an open-source, universal data standard that all market participants and technology providers can use, led to the creation of the GLML Foundation, which is an independent entity constituted by key capital market participants.

Dr. Avtar Singh Sehra, Founder and Chief Executive Officer of Nivaura commented: “It has been an honor for Nivaura to work closely with the LSEG, and Allen & Overy, in bringing the LSEG Flow platform to market and supporting its launch with LSEG’s debut multi-currency and multi-tranche transaction. This is the start of a new digitization and automation paradigm in the primary capital markets, where the LSEG Flow platform delivers proven technology to drive efficiency and effectiveness for all market participants.

“For Nivaura, our work here illustrates the flexible ways in which our expertise and solutions can be deployed with partners. We foresee a range of different approaches to primary markets efficiency being pursued, and we’ll act in line with our vision to fully digitize and automate primary markets.

“Cutting complexity, time, and cost out of primary capital markets by digitizing, automating and optimizing workflows is now a matter of urgency. GLML will play a crucial role in ensuring different new platforms can be interoperable, ensuring the market benefits fully from digitization and automation.”

Nivaura was selected to work with LSEG in 2019 under the FCA’s regulatory sandbox programme in which the financial watchdog accepted 29 businesses into cohort 5. The list of approved projects included a test that would integrate DLT within LSEG-operated listing and trading venues to test market infrastructure for the issuance of equity securities, evidencing the change of beneficial ownership.

Read this next

Digital Assets

Bybit under pressure from Ontario regulator after being forced out of the UK

Bybit has recently been forced to close its operations in the United Kingdom following the ban on Crypto CFD products earlier this year. 

Digital Assets

XRP, BTC, ETH, ADA, DOGE rebound despite being ‘rat poison’ to nearly half of surveyed by JP Morgan

While JP Morgan and its partners are institutionally staying back from the crypto markets, the investment bank is very much into blockchain technology.

Industry News

FTX and MLB partner together for brand awareness and innovation

FTX, one of the largest crypto exchanges in the world that has been on an expansion spree, has announced that it has tied up with Major League Baseball (MLB) in the US for brand awareness.

Digital Assets

Polygon (MATIC) and Aave grant recipient tie up to incentivise new users with rewards

Polygon (MATIC), a Layer 2 solution on Ethereum, has tied up with Aave grant recipient RabbitHole to incentivise new users for making deposits into Polygon.

Digital Assets

John McAfee, software pioneer and a big crypto supporter, dies in Spanish jail

John McAfee, the founder of the anti-virus software which was a household name a couple of decades back and a huge crypto enthusiast, has died in a Spanish jail on the same day that a court allowed him to be extradited to the US.

Industry News

TraderEvolution Global partners with TradingView: Brokers to enjoy direct access

The multi-asset platform is now connected to TradingView’s network of venues, liquidity pools, and asset classes 

Digital Assets

Visa and Paypal invest heavily into $300 million blockchain fund

Visa and Paypal, behemoths that have been known supporters of the blockchain domain, have invested in Fund V of Blockchain Capital.

Opinion

FX Trading is a business: If you want results, act like a professional. Go Prime of Prime!

Trading the markets is a business. It is no wonder that the ones that see it as gambling are willing to trade against the house, but retail traders that want results, they must act like professionals.

Digital Assets

Celsius acquires MVP workshop as it looks to build more on crypto

Celsius, one of the largest cryptocurrency lending and rewards earning platforms, has announced that it has acquired the development division of MVP Workshop as it looks to expand its development team.