Sovereign Debt: Debt trading to open up under DMO plan

Dramatic change ahead for quoting obligations and multiple trading platforms in sovereigns market.

Europe’s debt management offices are set to put in place a new mechanism for monitoring their primary dealers’ performance in meeting quotation obligations. The European Primary Dealers Association meeting that takes place on October 24 is likely to see market participants approve proposals discreetly made in May by Belgium, Denmark, Finland and the Netherlands that seek to reconcile the DMOs’ objectives of monitoring their primary dealers’ market-making obligations with supporting competition among electronic trading platforms.

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