BMA seeks greater transparency in bond transactions

| April 29, 2005 | 0 Comments
BMA seeks greater transparency in bond transactions

A study by the Bond Market Association released on Thursday found that while transparency in European Union bond transactions is increasing, there is still room for improvement before the level of transparency reaches that of exchange-traded equities.

The study is in preparation for the beginning of European Commission talks on whether the transparency provisions of the Market Financial Instruments Directive should be extended to other financial instruments, such as bonds.

This is in the wake of the increasing tendency toward bonds investment in the retail market, where there have been private individuals who have sustained large losses.

While most European bonds trading still consists of transactions between financial institutions, the number of retail transactions is increasing.

Most trades till take place in the over-the-counter market, where there is not as much transparency as there is in the equities markets.


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