A single tape might hurt block trades

Will increased transparency in the European corporate bond market lead to higher transaction costs for large trades?

In June 2023, the European Parliament and the European Council reached agreement on the European Commission’s proposal for a review of the regulation governing rules about the structure of the markets in financial instruments.

One of the key elements of this proposal was a mandatory framework for a consolidated tape that would bring together the prices and volumes of various financial instruments from hundreds of execution venues into a single stream.

A single system for corporate bond price and volume data would benefit small trades – but perhaps at the cost of liquidity for block trades.

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