FR AMF Bond Market Transparency

On May 20, FR AMF issued assessment on framework of MIFID II.

  • AMF issued first assessment of bond market transparency introduced by MiFID II.
  • Over 2yrs after MiFID II came into force, decided to assess measures introduced.
  • Particularly conditions for access to, use of post-trade transparency data by market.
  • Post-Trade Transparency
  • Since Jan. 3, 2018, post-trade transparency measures have been extended, beyond equity, to equity-like instruments, and also to other instruments, including bonds.
  • This information, including volumes, prices and time of transactions, is to be published whether transactions take place on a trading platform or they are carried out OTC.
  • Must be within prescribed deadlines and via approved publication arrangements.
  • AMF Analysis
  • Analysis, carried out on the scope of debt securities issued by French companies.
  • Revealed that the transparency of transactions is currently insufficiently accessible, reliable, exhaustive and hence does not enable investors to make effective use of it.
  • Transparency is derived from many different sources: a dozen platforms, to which are added numerous APAs (approved publication arrangements) for OTC transactions.
  • However data vendors do not currently consolidate full range of available data sources.
  • Participants therefore do not always have a complete view of the market.
  • Market participants still find it difficult to access data since some trading venues and data reporting services still do not meet all criteria defined by ESMA for accessibility.
  • There is data that is currently of questionable quality and potentially non-exhaustive.
  • For example, the ratio of overlap between transparency data and reporting to the regulator is estimated to be between 25% and 45% in terms of volumes traded.
  • Low level would not appear to be fully explained by differences in reporting rules.
  • Going Forward
  • AMF is committed to ensuring transparency in bond markets is properly implemented.
  • It will continue to work on improving the quality of reporting, both in terms of post-trade transparency and transaction reporting to the regulator.
  • Bolster compliance with level 3 measures by platforms, APAs with respect to access.
  • AMF is promoting international coordination with the other European regulators.
  • Finally, the AMF supports the introduction of a single consolidated tape in Europe.

Regulators FR AMF
Entity Types B/D; Bank; Exch; OTC
Reference Rp, PR, 5/20/2020; MIFID/MIFIR Dir 2014/65, Reg 600/2014
Functions Compliance; Legal; Trade Reporting
Countries France
Products Fixed Income
Regions EMEA
Rule Type Guidance
Rule Date 5/20/2020
Effective Date 5/20/2020
Rule Id 78166
Linked to
Reg. Last Update 5/20/2020
Report Section EU

Last substantive update on 05/22/2020