As regulators around the world struggle to understand the OTC markets and define the appropriate oversight regime we all know that the opacity and inefficiency of the OTC markets can be improved at a stroke. Every trade completed in the OTC markets, be that executed on a platform or in the voice market, should be published within 60 seconds. The trade details should include the principal transaction details and the price and size. Of course we all know that this transparency would in fact increase market efficiency as prices would tighten up saving money for insurance companies, pensions funds and asset managers. And given that liquidity begets liquidity more transaction flow would be brought to the markets. Of course the profile of investment banking revenue might change....
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