Nivaura, a regulated fintech company focused on primary market digitization and automation, today announced the launch of enhanced functionality for its flagship technology, Aurora.
Designed to tackle the structural inefficiencies in the new issue process, where interactions occur in a fragmented and manual manner, Aurora automates the new issue process for programme-based executions such as Euro Medium-Term Notes (EMTNs), Commercial Paper (CP) and Certificates of Deposit (CD).
Aurora functionality includes multi-party bond and swap termsheet negotiation, legal document and swap confirmation drafting, wet and digital signing, and the ability to disseminate data across internal and external systems. A highly anticipated feature is the ability for a dealer to upload a completed term sheet, enabling proprietary data to be captured and converted into structured data within an institution. Throughout the technology, banks have the ability to carefully manage their own data and user access rights.
In addition, dealers will have access to a library of digitized programmes, where new programmes can be created or added easily, and existing programmes can be updated annually. On launch, over 100 of the most used EMTN programmes will be digitized and made available to dealers. Over 2020 this will be increased to over 500 programmes, which will cover 100% of all private placement drawdowns and 80% of all syndicated transactions.
The initial rollout will focus on the EMTN private placement market, which sees almost $500bn of issuance each year including self-led transactions. The product will be expanded to handle CP and CD transactions, as well as syndicated transactions where the efficiency gains will be significant given the complexity and multi-party processes.
The modular nature of the technology means banks do not need to adopt all the technology at the same time, and can instead leverage components that complement their internal infrastructure and align best with their needs. Further, clients will have the ability to develop their own technology on top of the Aurora infrastructure.
Nivaura is pleased to have four prominent law firms as shareholders and partners, with Allen & Overy leading the effort on developing and performing early testing of the document digitisation and automation technology. These law firms have now established a consortium to support the adoption and development of the technology that underpins the document digitisation process. Other major law firms and infrastructure providers are also involved.
In addition, Nivaura is working on market solutions with infrastructure partners such as the London Stock Exchange, with joint development of a new primary markets service.
Dr. Avtar Sehra, Founder and CEO of Nivaura said: “Aurora delivers proven technology to drive efficiency, accuracy and transparency. With greater automation, we can help market participants remove redundant and duplicative activity and address time and cost pressures. It’s an enabling technology, automatically managing information for each part of the new issue process, so dealers can deliver digital capital markets services to their clients”.
Spencer Lake, Board Member of Nivaura and former Vice Chairman of HSBC’s global banking and markets division business added: “The DCM market is critical to corporate financing in Europe, but the new issue execution process hasn’t been modernised. It’s clear a new capital markets paradigm is forming, as legacy businesses focus on service differentiation and value-add, while addressing costs and regulation. To do that, innovative approaches involving new technology are needed. Nivaura is exceptionally well placed to deliver exactly that to the market.