Newsletter Jul/Aug 2006: Bond transparency is not causing market failure

There is no evidence of substantial market failures related to transparency in Britain’s wholesale bond markets, according to the country’s financial regulator, the Financial Services Authority (FSA). This is the key conclusion of an analysis of secondary bond market transparency that the FSA has been undertaking ahead of a European Commission review of whether the transparency requirements in the Markets in Financial Instruments Directive (MiFID) should be extended to asset classes such as bonds and derivatives.