OTC trade sizes could shrink under Mifid reporting rules
Market-makers will be uncomfortable taking on less liquid trades if instant reporting is required, warns a panel at Isda's European conference
Incoming transparency rules could shrink over-the-counter derivatives trade sizes, as market participants try to avoid revealing their positions, according to an industry panel at the International Swaps and Derivatives Association's European conference yesterday.
In Europe, the Markets in Financial Instruments Directive (Mifid) and accompanying regulation (Mifir) will introduce new transparency rules for standardised OTC derivatives. The initial draft proposals from the European Commission (EC)
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