This paper focuses on the cash markets for bonds – both the government and non-government sectors. It does not directly consider transparency in related derivatives markets. However, we recognise the strong inter-relationship between trading in the cash and derivatives markets, and consequently the importance of trading information flow between the two. We invite comments on the role of transparency in that inter-relationship, and we will consider extending our review to cover derivatives at a later stage.
The paper has been prepared by the FSA with the help of a small industry working group. The group, whose members participated on a personal basis rather than as representatives of particular institutions or firms, included representatives of the buy- and sell-sides, as well as issuers, the operator of an Alternative Trading System (ATS) and an academic. The composition of the group was also designed to give the discussions a broad international perspective. We are very grateful to members of the group for their contributions and for the time and effort they gave in attending meetings and reviewing papers.
However, the Discussion Paper itself is the work of the FSA and the paper should not be taken as representing the views of any individual group member.