For instance, 27 banks were publishing deals on the system by October, up from 11 in January, and more than 90 investor organizations have placed orders on the platform. It now claims involvement in 80% of euro issuance and 65% of sterling issuance.
Impressive stuff. There is just one problem: the US. There is a glaring absence of large US players in its roster of participating banks, spearheaded by HSBC and BNP Paribas.
This is something that cannot be ignored, given that market’s domination of fee pool and issuance volumes. In the first half of 2017, the US accounted for 40% of global debt capital markets volume and 58% of global DCM underwriting fee revenue.
Many DCM market participants that Euromoney has spoken to recently state quite bluntly that Goldman’s involvement in Investor Access is a big problem for them.
It is little surprise therefore that three of the largest US DCM underwriters – Bank of America Merrill Lynch, JPMorgan and Citi – are now rumoured to be working on their own proprietary electronic book-building platform to rival Investor Access.
When questioned by Euromoney, none of the three confirmed the existence of this project on the record.
However, controlling the automation of US dealer book-building is quite a prize – and the dealers themselves want to take control of the process.