Addendum Marketplace Update 2023

Oct 10, 2023 | Blog, Funding Solutions, News

It has been a productive year for our Marketplace team. Since the beginning of the 2023, marked by our inaugural Marketplace Roadmap Event in January, we’ve made significant improvements in both our platform technology and business model. These efforts have resulted in increased platform activity and growing market support, which we shared with users during our August Roadmap Event.

Addendum remains firm in our commitment to enhancing liquidity in South Africa’s corporate bond market.

“Addendum’s mission is to improve liquidity in South Africa’s corporate bond market. Our approach is to create a marketplace where participants can post, negotiate and trade listed debt securities. A single, liquid, bond marketplace should benefit all users through spreads, transparent pricing, market depth and process efficiencies. Improving liquidity requires a sustained effort from all role players. Thank you to everyone who has bought into our mission so far.”

Willem le Roux, Co-Founder & CEO, Addendum

Commercial Progress

The Marketplace platform has witnessed steady growth due to three key factors: an expanding user base, more instruments posted to the platform by banks, and fund managers starting to post their own interest instead of only reacting to interest posted by the banks. Compared to the first eight months of 2022, interest posted has more than doubled, users submitted 28% more bids and offers, and trading volumes surged by 61%.

Our CEO, Willem le Roux, described the platform’s growth as “encouraging” but emphasised that the work is ongoing.


Platform Activity

Metric Jan – Aug: 2022 vs 2023
Interest posted +153%
Bids and offers +28%
Nominal traded +61%



Changing User Behaviour

We’ve observed evolving user behaviour trends the past six months, with an increase in paying users and a shift towards larger ticket sizes. Notably, users are taking more risks by submitting bids beyond traditional guidance, which aids in improving price discovery and offers valuable insights to liquidity providers.

The bid success rate has declined from 57% in 2022 to 32% this year, and below 25% in recent months. Users are becoming more willing to bid off guidance and are investing less personal time and energy into ensuring transaction success. This is exactly the type of behaviour one would expect to see on a liquid digital marketplace.


Trends Observed

Metric Jan – Aug: 2022 Jan – Aug: 2023
Bank: Buy-side interaction 38% 75%
Average transaction size R18m R34m
Bid success rate 57% 32%



Roadmap: Update and Future Plans

The development team has made substantial progress, driven by user feedback collected after our first Roadmap Event in January. Here are some key improvements, upcoming features, and plans for the road ahead:

Addendum roadmap event update 2023
Enhancements and Upcoming Releases

Role Simplification: We’ve streamlined user roles, eliminating distinctions between members and brokers. This allows members to act as brokers, should they wish to do so.

Non-Member Trading: Non-members can now seamlessly trade with each other via intermediaries.

Fee Recovery: We have automated the calculation and recovery of the Addendum fee for fund managers.

Systems Security: Ongoing efforts to enhance system security, including the introduction of two-factor authentication at login.

Market Making Functionality: Responding to user interest, we are developing features such as improved anonymity, platform alerts, integrating with user systems via API, and a revamped the Marketplace Screen for enhanced user navigation.

Analytics: We added fixed coupon bonds and inflation-linked bonds to our analytics offerings. As a result, the accuracy of the modelled spreads displayed for these bonds on the Marketplace has been significantly improved.


Future Plans

Expanding Traded Credit Types: We aspire to become the preferred platform for trading credit and are considering adding other traded credit types based on market feedback. Additionally, we plan to broaden our offerings to include instruments listed across various South African exchanges.

Data Analytics: We continue to prioritise price discovery by developing advanced analytics tools designed to help users make informed trading decisions. One such project we are exploring is stochastically simulating data points for bonds with stale trading information.

Addendum is dedicated to achieving our mission of a liquid corporate bond market in South Africa. We will continue to address challenges and embrace opportunities as they arise.

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About Addendum

Addendum provides supply chain finance and funding solutions to companies and funders in Africa. Please contact us for more information about how we can unlock value for your business.

Addendum provides financial technology solutions to companies and funders and aims to become the benchmark for best execution in our targeted markets. Our fintech solutions are capable of unlocking capital and funding for businesses of all sizes. We have designed real-time, online solutions that make markets transparent and products simple and seamless to execute.

Where others saw a barricaded, antiquated machine, we saw possibility. With transparency, convenience and choice as founding principles, Addendum puts you in charge. We believe that a small change to your business strategy – an addendum – can open a world of potential for your business.