This feedback statement reports on the main issues arising from Discussion Paper 05/05 (Trading transparency in the UK secondary bond markets) published in June 2005.
www.fsa.gov.uk/pages/library/policy/dp/2006/fs06_04.shtml
In September 2005, we issued a Discussion Paper on trading transparency in the UK secondary bond markets (DP05/5).1 That paper examined the nature and structure of the UK bond markets, the role of transparency in those markets and the amount of trading information currently provided to market participants. It posed a number of questions around two key themes: whether a failure existed in the way that the secondary bond markets operated; and the role that trading transparency played. Our main reason for issuing the DP was to inform our thinking ahead of the forthcoming European Commission review of whether transparency requirements akin to those set out in the Markets in Financial Instruments Directive (MiFID) for markets in shares should be extended to other asset classes, including bonds. The Commission is due to present its report by end-October 2007 and has recently initiated the review process by issuing a call for evidence. We were keen to obtain the views of market participants to ensure that we were able to input effectively to the Commission’s review, and the contents of this Feedback Statement will form the basis of our response.