Bear, Stearns & Co is to launch its first corporate bond issue to be priced via an Internet-based Dutch Auction system.
Bear Stearns' proprietary system, Dutch Auction internet Syndication System (DAiSS), utilises a modified Dutch Auction pricing engine to provide issuers and investors with an automated, transparent system for pricing and distributing fixed income securities in the primary market.
DAiSS represents the next step in the evolution of corporate bond underwriting, says the company, and represents a significant enhancement to the technology developed in Internet-based order entry systems, such as Bear Stearns' iBOSS. As with electronic order systems, DAiSS also provides integrated information and electronic documentation delivery, settlement and clearing.
The initial offering via DAiSS is expected later this week, market conditions permitting.