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Pre-Trade Transparency Targeted in Corporate Bond Markets – Business Times 

Full Article: Business Times

Global securities regulator umbrella body IOSCO has recommended that its members seek more information on corporate bond trading, particularly on the specifics of the market before a trade is made, and how it is subsequently reported

Comments
  • Mustang
    MustangAugust 18, 2017"Not a lot of information in this article, however there is a big distinction between collection and dissemination. The NASD collects a lot more information than disseminated. In many respects, I wish the hard data collected was actually disseminated, such as from ATS platforms. That said, what market widely disseminates intentions, as opposed to explicit transaction levels? Seems like an easy way to game the market. Anytime you wanted to buy bonds, submit a sell IoI.…"
  • Wolfman
    WolfmanAugust 18, 2017"Right on Cougar! I love being part of the Friday Newsletter because more often than not, we not only have the 10,000 hours team taking two sides of an argument, but also have two articles in the newsletter taking two sides. Yes, yes, yes, every academic paper points to greater pre-market transparency, but in practice, the results are often counter to the objective. Case in point is the article on Lazy Traders. By the way, there must be some copyright issue with that p…"
  • Cougar
    CougarAugust 18, 2017"Disclosing individual buy-sell side cares shared with a broker is insidious. IOSCO and the national regulators need to reflect on their objectives: is it to ensure every participant is treated the same irrespective of performance or MO, or have a functioning, liquid, deep, bond market to minimize funding costs for public and corporate entities and ensure minimal state aid in a crisis? If every market participant is treated the same way then that detracts from the inve…"

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Cougar
Member
Disclosing individual buy-sell side cares shared with a broker is insidious. IOSCO and the national regulators need to reflect on their objectives: is it to ensure every participant is treated the same irrespective of performance or MO, or have a functioning, liquid, deep, bond market to minimize funding costs for public and corporate entities and ensure minimal state aid in a crisis? If every market participant is treated the same way then that detracts from the investor diligence requirement for investment selection – even if it’s just looking at fees or performance – which leads to market failure of higher… Read more »
Wolfman
Member
Right on Cougar! I love being part of the Friday Newsletter because more often than not, we not only have the 10,000 hours team taking two sides of an argument, but also have two articles in the newsletter taking two sides. Yes, yes, yes, every academic paper points to greater pre-market transparency, but in practice, the results are often counter to the objective. Case in point is the article on Lazy Traders. By the way, there must be some copyright issue with that picture – but I digress. Here’s the result of regulations with good intent going bad. And I… Read more »
Mustang
Member
Not a lot of information in this article, however there is a big distinction between collection and dissemination. The NASD collects a lot more information than disseminated. In many respects, I wish the hard data collected was actually disseminated, such as from ATS platforms. That said, what market widely disseminates intentions, as opposed to explicit transaction levels? Seems like an easy way to game the market. Anytime you wanted to buy bonds, submit a sell IoI. Then when bonds widen out, buy them and claim that you were off on your price and would be a buyer at that level.… Read more »
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