
FCA Urged to Review Bloomberg Bond (Trading) Rejections – The Trade
May 12, 2016 \
18 Comments
Full Article: The Trade
“There was a look of horror on the regulators’ face. In their view, the screen price is a real price so there must be liquidity, but that simply isn’t the case.”
Comments
Leave a Reply
18 Comments on "FCA Urged to Review Bloomberg Bond (Trading) Rejections – The Trade "
I can’t believe the regulators were truly surprised. As rightly pointed out Bloomberg gets away with not being regulated but indicative prices are also the norm on other B2C platforms… By the way the image of the empty pool is cute except that actually the pool appears full until you (need/want to) dive in!!!!
Hilarious that the BoE says there is no liquidity issue when with all these independent initiatives none need to seek BoE or FCA endorsement or explain what they are trying to do. Regulators spend such little time with market people, the technology & thus can’t understand what is going on. Well done Chris Bowie for his work to scare the FCA. Try the other platforms. When a bank in bond trading places a price is it executable, indicative, reference or purely an advertisement? Also the ownership of many of the main platforms being bank owned needs to be addressed
Sadly you quickly discover that large organisations like regulators and central banks do not share information internally. It explains a lot.
This post hits it on the head. BBG is only the ultimate liquidity solution if you only look at them. They SHOULD be regulated.
They have a network. They should be leasing that network and clipping a fee. They are fighting a shrinking market, Eikon taking terminals, Symphony, etc. Why not lease your lines?
This will make you laugh. Six years ago I developed software that enabled buy-side clients to send my trading firm live, executable bids and offers that went onto ALLQ in the name of my trading firm, protecting their identity. This meant a buy-side could now be the bid and/or offer live and firm on ALLQ and get hit or lifted by other buy-sides, just like a market-maker.
It told me then that the buy-side have abundant liquidity that is better quality than the sell-side.
Related Posts
Blackrock’s Richard Prager: The Liquidity Is Out There – Institutional Investor
March 18, 2016Everyone is Worried About the Thing Markets Need Most, But They’re Not Asking the Right Questions – Business Insider
March 25, 2016US Companies Overpaying for Bonds; Banks May Be to Blame – Reuters
March 31, 2016