EC: regulators could adapt rules to protect bond liquidity

Official recognises regulatory hit to corporate bond and repo markets, but rejects Mifid delay

The European Commission will continue to weigh the impact of regulations on secondary corporate bond market liquidity and could adapt the rules further, according to a top European legislator, who said robust corporate bond markets are viewed as a necessary step for a European capital markets union.

“Clearly, corporate bonds and repos were identified as markets where the cumulative weight of the regulation had led to a change in dynamics, and had led to a change in the capacity of the market to