Buy-side Perspectives Issue 3 - Page 11

“CSDR will be problematic, especially for high yield bonds in the credit space,” said Chappell. “If there’s a forced buy-in after two days it really wouldn’t make sense for certain houses to continue quoting twoways. Sell-side traders will be more reticent quoting the right side.” Perhaps more worrying for the institutional investor are MiFID II requirements around transparency. European regulators have expanded the basic structure of the original MiFID to encompass other asset classes, including fixed income and FX. While these measures are in principle intended to safeguard the market, there are serious concerns among multiple players on the buyside that too much transparency may not be beneficial when applied to asset classes less liquid than the equities for which those principles were originally meant. “Transparency is not necessarily appropriate pre-tr YK8