Clarifying MiFID II: Pre-trade transparency for non-equities

Abstract

The European credit markets are experiencing unprecedented market structure
changes due in part to wide-reaching regulations. The Markets in Financial
Instruments Directive (MiFID) II will bring new levels of pre- and post-trade
transparency for non-equities as well as an increased scope of transaction
reporting for all market participants. These changes will impact all areas of
the trading life cycle, encompassing sales, trading, research and operations,
and will have implications across the market including both investor and
dealer firms. Miranda Morad, General Counsel, and Jason Waight, Head of
Regulatory Affairs & Business Management, MarketAxess Europe and Trax,
provide expert commentary on how these changes will potentially impact the
European fixed income markets. Based on data from MarketAxess and Trax, the
market data analysis conducted offers a truly unique view of the impact of
regulatory change. Trax, a subsidiary of MarketAxess, estimates that it
processes approximately 65 per cent of all fixed income transactions in
Europe as part of its post-trade service offering.