Currently, the Markets in Financial Instruments Directive (MiFID) applies to all asset classes, including bonds, except in the price transparency area where it only applies to equities, although EU regulators do have the flexibility to extend those provisions to bonds.
As required under MiFID, the European Commission has begun to consider whether to recommend a similar regulatory approach to pre-trade and post-trade transparency for bonds and derivatives. It will issue a draft report by June 30, followed by a public hearing in July. Consultation will close in September and the commission’s final report will be published on October 31, 2007.
