Origin, the London-based fintech digitising debt capital markets, has launched Origin Extract to digitise any manually created bond termsheet, extracting structured data to automate and streamline the processes that depend on them.

Origin Extract automatically analyses trade documentation, extracting all relevant information accurately and efficiently, enabling all involved players easy access to standardised, structured trade data. Users can now drag-and-drop PDF termsheets into the Origin platform, and the product uses machine learning (ML) to identify important bond-specific data points informed by Airbrush, Origin’s industry-leading interface data standard, launched with the aim of being a universal language for bond issuance market participants.

Documentation – slow, repetitive, and prone to error

The widespread and well-understood frustrations with the current issuance process show it’s not fit for purpose, riddled with complexity, manual tasks, repetitive data entry and a high risk of inaccuracy or error. Bond settlement can take up to five days – a process complicated by the number of different parties involved. From the initial creation of the termsheet, right through to final terms and settlement, the information about a trade has to be passed through different systems, at different stages, by multiple market participants. Documents typically exist as PDFs, which require each party to re-key and proof the terms of the PDF into their own system at each change of hands. The demand from market participants is clear. Exchanges, IPAs and clearing houses alike have expressed a need for a streamlined process and structured trade data.

Origin’s platform already structures and stores data for trades that take place within the Documentation product, meaning dealers and issuers alike can use the platform to collaborate on documents and through automation of the process, can work more effectively and efficiently together. For any trade that is not happening on the platform yet, Origin Extract creates a new path to digitise the trade and automate its processing.

Streamlining the process

Attempts to optimise the documentation process do exist – from mandated standardised templates, or the use of optical character recognition (OCR) technology – however their success levels vary and as such the industry-wide problem endures. Origin Extract has been launched with the aim of paving the way to a world in which the entire process is seamless, accurate and efficient. Importantly, it is integrated into the Origin Documentation product, and works as a complement to Origin’s existing Termsheet Generator. By having two entryways into the workflow, users can ensure structured data is never missed.

John Judeh, Lead Product Manager at Origin, said: “We see this as an essential step in paving the way to more seamless and efficient bond issuance. This will enable more effective collaboration between market participants by adding automation to a greater proportion of issuances. This is a big step towards our mission of enabling a fully digitised debt issuance market.”

Raja Palaniappan, CEO at Origin, said: “Origin Extract is another arrow in Origin’s quiver as we make progress on our mission to digitise the entire bond issuance process. The development of Origin Extract shows the value of our team’s commitment to constant improvement, innovation, and experimentation. The entire Origin platform was built internally by our world-class team of engineers and designers, and it’s fantastic to see that talent produce exciting new developments such as this one.”

Origin Extract is the latest addition to the Origin product suite which already includes Origin Marketplace, which brings together investment banks and frequent borrowers to identify issuance opportunities; Origin Documentation, which automates document creation (such as termsheets, final terms, and accession letters); and Origin Post-Trade, which sends data to exchanges, agents and clearing houses without any human intervention through APIs. Last year, Origin also launched Airbrush, a universal data standard for bond issuance, alongside an “instant ISIN” feature to allow automated allocation to Eurobonds for frequent issuers, both in partnership with Clearstream (the Luxembourg Stock Exchange also supported Airbrush).

Origin announced its Series A round closed at $7 million at the end of 2020, led by Clearstream and the Luxembourg Stock Exchange, which brought total funding to $10 million.