International clearing agencies Clearstream International, Euroclear and the Depository Trust & Clearing Corporation have joined together to develop a messaging system for the European commercial paper markets.
The new offering - called the European Pre-Issuance Messaging (Epim) service - will be based on PIM, the Pre-Issuance Messaging service created by The Depository Trust Company (DTC) and introduced in the United States in 1999.
The European version of the system will link organisations settling euro-commercial paper trades with dealers and issuing agents electronically and in standard messaging formats, allowing the online exchange of International Security Identification Number (Isin) codes and issuance information.
The initiative has been endorsed by the European Commercial Paper (ECP) Association, a trade group representing international banks and securities firms which promote international securities and the development of the euro-commercial paper market in Europe.
Pierre Francotte, chief executive officer of Euroclear Bank says: "The joint initiative is a win-win situation for issuers and investors. The fact that we can build on an existing product with a proven architecture speeds the process and minimises costs – and that represents savings we can pass on to our clients."
Epim is scheduled to be operational this autumn.