Traders of Asian fixed income assets should re-evaluate liquidity contingency plans due to the changing profile of those investing in Asian bond markets, according to a new report.
Industry told that MiFID II's dark pool caps will inevitably force flow back onto lit markets, where it risks being gamed by other market participants.
The Australian Securities and Investments Commission (ASIC) will not introduce new regulation for high frequency trading and dark liquidity, finding that existing settings “are largely adequate and effective.”