ECB Plan to Modernize Bond Sales Gets Cool Reception From Banks
- Some banks concerned EDDI will diminish their traditional role
- Electronic platform is designed by public-sector borrowers
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An effort by the European Central Bank and the region’s biggest public-sector borrowers to modernize bond issuance is getting mixed reviews from banks amid concern it may diminish their decades of control.
Market participants have until July 9 to submit feedback to the ECB on the electronic platform, known as the European Distribution of Debt Instruments. EDDI may only go ahead if it gets positive feedback and would be completed around 2021, said Kalin Anev Janse, secretary general of the European Stability Mechanism, one of the borrowers involved in the project.