Origin launches instant-ISIN feature with Clearstream as universal data standard Airbrush is upgraded
• Origin in partnership with Clearstream launches instant-ISIN feature for Eurobonds (i.e. “XS” ISIN codes); the service will be rolled out across the issuer base over the course of the summer
• Open-source data standard Airbrush V2 adds new features; Clearstream and Paying Agents can now receive transaction data via Airbrush; digital listing at the Luxembourg Stock Exchange launched earlier this year is also compatible with Airbrush V2.
• Market-first, truly open-source term sheet template available for free use by all fixed-income market participants to foster standardisation of bond issuance
Origin Markets, the London-based fintech digitising debt capital markets, is launching an instant-ISIN feature, created in collaboration with Clearstream, which enables immediate, integrated ISIN code allocation for Eurobonds. ISIN codes are provided by Clearstream Banking S.A. and will support Eurobond issuance (i.e. “XS” ISIN codes). The structured data from the approved termsheet is validated against ICSD requirements directly on Origin platform, allowing codes to be provided instantaneously and accelerating a process that can sometimes take hours.
Airbrush: enhanced data standard for bond issuance
The service launch coincides with the release of the next iteration of Airbrush, an interface data standard that aims to act as a universal language for all bond issuance market participants. Airbrush v2 covers a broader set of data, delineates between the data required for ISIN allocation at termsheet completion and those required for settlement and enhances scalability by incorporating a nested structure. The new version was developed in close consultation with industry partners.
As first-movers, Clearstream can now receive transaction data via Airbrush. Origin and the Luxembourg Stock Exchange have also ensured compatibility of the digital listing service with Airbrush V2.
Raja Palaniappan, CEO and co-founder of Origin, said: "Today is a big day for Origin as we release our instant-ISIN feature with Clearstream. Dealers and issuers have been calling out for faster code allocation for a long time, and we are pleased to be able to offer that to our customers going forward. We are especially thrilled to release the specs for Airbrush v2, which drives both our instant-ISIN feature and our digital listing API with the LuxSE. These are just two examples of post-trade efficiency that is possible when the market adopts a universal data standard, and we are pleased to see the momentum Airbrush has already gained. In launching these new features and providing free access to these solutions, we hope to catalyse and support industry-wide innovation. Collaboration and knowledge-sharing is invaluable in achieving this.”
Guido Wille, Head of Eurobonds Business at Clearstream, said: “The Instant-ISIN feature is a major step for the whole Eurobonds market. As the market has grown tremendously not only during the pandemic, efficiency and automation are becoming indispensable to handle large volumes in a scalable way. We are glad to offer our clients leading-edge issuance services together with Origin.”
Open-source term sheet
One feature of the new Airbrush release is a market-first, truly open-source term sheet template for Eurobonds. It is available for free use by all fixed-income market participants to foster standardisation of bond issuance. The term sheet will be available in two forms:
1. A marked-up version created for use by dealers, issuers, law firms, and others annotated with directions to aid in the completion of the form
2. A machine-readable version, marked-up using Jinja, the open-source templating language created for Python. As Jinja and Python are both open-source, anyone can test the termsheet using a freely available Jinja templating library online
About Origin Markets
As a pioneer of digital debt capital markets, Origin sits at the intersection of fixed-income market participants – from dealers to issuers and paying agents – providing a unique insight into the data needs of different players used to inform integrated, efficient solutions. Origin offers three products that work together to automate debt issuance: Origin Marketplace, Documentation and Post-Trade modules. The company now has over 90 issuers and 20 dealers as clients, including some of the largest participants in the international capital markets. Origin’s ambition is to establish a digital, end-to-end, straight-through-processing issuance platform for international fixed-income capital markets.
With no universal standard for bond issuance, the same data points are created several times in multiple systems, with different names, formats and validation, meaning market participants must translate data as it is passed from platform to platform, creating inefficiency and increased risk of error. Airbrush aims to determine the minimum set of data required for the processing of fixed income issuance, by consolidating the data requirements across post-trade market participants. Using the Airbrush standard removes the need for multiple costly and error prone bilateral interfaces. Market participants do not need to change internal systems, such as platform IT or data models, and technology providers can utilise their own markup languages. Airbrush ensures that when communicating with one another, systems will send and receive the necessary set of parameters in a consistent format. The data will be aligned with the needs of downstream market participants, and curated and reported by Origin in an accessible and consumable format. The data standard will be published using the OpenAPI specification, accessible at https://originmarkets.com/airbrush , The specification has been implemented into the Origin platform's new Transactions API, enabling clients to pull their post-trade transaction data effective immediately. https://originmarkets.com
As an international central securities depository (ICSD), headquartered in Luxembourg, Clearstream, which is part of Deutsche Börse Group, provides the post-trade infrastructure for the Eurobond market and services for securities from 58 domestic markets worldwide. With 16 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.