The Investment Association (IA) has proposed new measures to increase the availability of data on bond trades in an attempt to enhance transparency in the fixed income market.
The trade body representing asset managers recently published a paper on best execution 10 months on following the introduction of MiFID II in January 2018.
Asset managers are required to report on and disclose their top five execution venues on an annual basis under the new requirements, and demonstrate how they are achieving the best possible results for investors when executing bond orders.
The fixed income market has faced more challenges under these rules than the equities markets given they are less liquid and lack continuous pricing.
The IA highlights how a lack of data in the fixed income has increasingly come and subsequently suggests that regulators should up their efforts to reduce market data costs along with the development of a consolidated tape.
“Asset managers are concerned that the poor availability of data in the bond market is undermining transparency,” said Galina Dimitrova, Director of Investment and Capital Markets at the IA
“A well-functioning bond market is essential to allow companies to borrow more affordably, enabling economic growth and the creation of jobs. Our recommendations aim to improve the availability of data, which will ultimately deliver better returns for end investors.”