Industry calls for new secondary trading model

Author: Gemma Varriale | Published: 3 Jun 2013
  • A regulatory drive toincrease transparency has prompted significant change in the secondary debtcapital market;
  • These reformscoincide with an industry-wide search for swift, efficient and cheap executionvenues, and a Basel III-led disintermediation of bank balance sheets;
  • Panellists at theICMA’s annual general meeting in Copenhagen warned the changes combined hadcreated a game-changing and unsustainable situation;
  • Speakers argued,that, as trading becomes more agency-driven, there is an urgent need for buy-sideactors to more proactively generate orders;
  • But the fact thatliquidity can take different forms is another issue that must not beoverlooked.

Secondary debt capital markets must evolve to address marketconcerns, industry leaders have said.

A regulatory...