Mifid II threatens end to ‘mates’ rates’ in OTC market
Transparency rules for bilateral trades will end relationship-based pricing, banks warn
Relationships will count for less in tomorrow's over-the-counter derivatives markets, dealers are warning – at least in Europe, where banks will find it more difficult to give favourable prices to their best customers under a draft version of the second Markets in Financial Instruments Directive (Mifid II).
For products traded bilaterally, the regime would require big dealers to share quotes with all their other clients, threatening the industry's traditional practice of tiering prices according
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