A joint industry initiative to respond to MiFID II should draw lessons from the US to ensure technical rules are drafted and implemented effectively.
There are no short cuts to finding the balance between transparency and liquidity in the fixed income markets, but at least there is road-tested approach from the US that might show the way.
Third-party trading platforms that enable investors to deal in fixed income with each other are becoming a bigger feature of the market, but can they really match the liquidity the banks were once able to offer?
Do capital constraints in fixed income markets demand a return to an agency approach by banks or is a more fundamental shift in market dynamics on the cards?
Fixed income market participants are unsure whether new EU legislation will improve or harm liquidity, a recent survey has found, and many are doubtful about the potential positive impact of MiFID II.
US Treasuries trading platform eSpeed has migrated to Nasdaq OMX’s data centre to provide customers with increased service and access.
As a result of the central securities depository regulation which will migrate European markets to T+2 settlement beginning in October, the International Capital Markets Association will change the standard settlement cycle for cash transactions.
Efforts by the Financial Conduct Authority to reform how institutional investors pay for research and execution services have been praised following last week’s policy statement by the UK regulator.
Fixed income is facing a liquidity crisis as banks are reducing market making activity in the asset class. Could a new US-based dark pool for bonds be the answer to the market’s problems?