Debt Markets

Challenges that we specifically address through our solutions include:

• Inefficiencies in issuance, trading and post-trade processes
• Illiquidity in secondary markets and limited primary market issuance
• Limited access to markets due to high minimum transaction sizes

As with other asset classes, various institutions attempt to address these challenges through both end-to-end platforms and solutions that are more narrowly focused on specific components of the value chain as opposed to our approach to offering an end-to-end platform for the full lifecycle of the asset.

Given the fragmented, over-the-counter nature of secondary market trading, bonds will significantly benefit from XDEX as they’re easier to transform into a digital financial instrument, without requiring wholesale market transformation.

• The bond issuance process is highly manual and prolonged, with significant time required to issue and receive proceeds.
• Because secondary markets are largely over-the counter, liquidity tends to be fragmented, with limited ability to accurately price trades.
• Corporate bond markets tend to face limited secondary market liquidity overall, thereby limiting some investor interest and affecting cost of capital.
• Trading processes are largely manual, leading to significant inefficiencies and poor data quality for all participants.
• Relatively high minimum ticket sizes (given high transaction costs) exclude most retail investors.
• All parties retain siloed data structures, calculating payments and other transactions independently using reference data, thus creating inefficiencies.
• Extended settlement time frames add additional cost and risk.