The stratospheric rise of electronic bond trading platforms is presenting several problems to regulators and traders, according to a report by IOSCO (IOSCO). It said the large number of bond trading platforms has led to a lack of standardisation and fragmentation of practices, and called for more connectivity. The report also said the proliferation of platforms meant it was increasingly difficult to identify counterparties for given trades, and expressed concern about the lack of a centralised liquidity pool.
The stratospheric rise of electronic bond trading platforms is presenting several problems to regulators and traders, according to a report by the International Organisation of Securities Commission (IOSCO). It said the large number of bond trading platforms has led to a lack of standardisation and fragmentation of practices, and called for more connectivity. The report also said the proliferation of platforms meant it was increasingly difficult to identify counterparties for given trades, and expressed concern about the lack of a centralised liquidity pool.