Dealers cling to “commercial policy” as get-out in Mifid II price tiering downfall
Mifid II’s pre-trade transparency proposals are set to put an end to client-specific derivatives pricing for end-users, force small tickets on to platforms and potentially push customers into the arms of smaller dealers
Good clients will no longer get the best prices, derivatives exposure will be spread around an array of small banks instead of being concentrated with the market leaders, and it will be impossible to pick up the phone and get a quote for a small trade. For European corporates and buy-side firms, this is what tomorrow's bilateral swaps market looks like – according to dealers, at least – and alarm bells are already ringing.
"I don't see why customers that are creating a lot of business for banks
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