[ BUY-SIDE COVER | DEGROOF PETERCAM ]
“ While regulatory changes have undoubtedly aimed to improve transparency and market structure, their actual impact on pricing and liquidity has been far less transformative than the prevailing narrative suggests. The reality is that transparency, as it currently stands, is being applied in areas where it is least needed, offering little value to market participants.
“ In other words, the regulatory focus on transparency has been disproportionately directed at the most accessible corners of the market, while the broader fixed income universe- where liquidity is fragmented, and price discovery is genuinely complex- remains largely untouched.”
However, Renna explains that this dynamic could shift significantly with incoming changes including ESMA’ s proposed consolidated tape, as well as the revised definition of liquidity.
Overall, market structure changes“ could create new dynamics in how liquidity is
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