MiFID II for Bonds: Showing Your Cards

We now have three months before the latest swathe of European market regulations are phased in, and the bond market is set for a transformational overhaul that goes far beyond any comparable reforms in other regions. Trade reporting, publication of trade data and best execution requirements combine to make the technical and transparency burden the most challenging area for many. Almost uniquely, a set of rules will directly apply to bond trading in a way that has not been seen before.

Banks will now have to assess the implications of transparency calculations, dealer designation, research payments, pre-arranged trades and the effect of global harmonization, as all will tangibly change the way people think about global markets. For fixed income market participants, these changes will spur them to make decisions that affect the way they will choose to do business in the future.

This TABB Group report, “MiFID II for Bonds: Showing Your Cards”, identifies the latest available information about each of these areas to clarify the state of play - and likely future direction of fixed income workflow - as the new market standards evolve in line with the new European requirements.