Direct-Issue Limited Launches Electronic Marketplace for Trading New Equity and Bond Issues
The facility has five main components. It takes users from pricing and marketing new issues all the way to the secondary market. Using the Fee Estimator, issuers can gauge in advance the cost of a transaction and then pre-test terms and conditions with potential purchasers on the issuers’ Symposium without disclosing their identity. Together with the open schedule of charges, this permits issuers to calculate the cost of raising money before committing themselves to using the site’s DealArranger or New Issue Auction facilities. Banks, brokers and advisers can compete for business through Direct-Issue’s DealArranger – a structured introduction service. The facility covers loans, new issue business and ‘block trades’ of securities. Fees are paid only by those raising money. Users might include commercial and investment bankers, fund managers, professional advisers and finance directors. Bonds, syndicated loans, shares and other securities are distributed via New Issue Auctions, using the time-honoured ‘Dutch auction’ system. Issuers pay competitive fees on completed transactions. Investors pay no fees and have equal access to new issues. Users will include corporate treasurers, commercial and investment bankers, professional advisers and senior officers of corporations and state agencies. Crossing Auctions allow investors to trade a wide variety of assets, including corporate and government bonds, loans, warrants, shares and Medium Term Notes (MTNs). Direct-Issue members can request an auction for any security with an International Securities Identification Number. This is a free service. Users would include fund managers, traders and brokers.