Fear for corporate bonds trade

CESR published on the 10 July 2009 its final report (Ref. CESR/09-348) and feedback statement (Ref. CESR/09-
349) on the transparency of corporate bond, structured finance product and credit derivatives markets. CESR is of the view that current market-led initiatives have not provided a sufficient level of transparency. CESR considers that an increased level of transparency would be beneficial to the market and that a harmonised approach to post-trade transparency would be preferable to national initiatives taken in this area on the basis of the flexibility allowed by MiFID. CESR has therefore considered it necessary to inform the European Institutions on the main conclusions reached in its report and to recommend the adoption of a mandatory trade transparency regime for corporate bond,
structured finance product and credit derivatives markets as soon as practicable.

Article reports that European corporate bond markets could be permanently damaged by attempts by regulators to improve transparency, many asset managers and traders fear.

Website: Investment Management Association http://www.investmentuk.org/

Committee of European Securities Regulators: Homepage http://www.cesr-eu.org/

CESR: Press Release, 10.7.09: CESR recommends the Commission to introduce a mandatory trade transparency regime for non-equity markets http://www.cesr.eu/popup2.php?id=5800

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