Transparency Proposals for European Sovereign Bond Markets

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Peter Dunne

This paper by Peter Dunne explores the reasons why European sovereign bond markets have developed such a high degree of segmentation and considers how this structure could be altered to improve transparency without adversely affecting liquidity, efficiency or the benefits enjoyed by primary dealers and issuers. The author, Peter Dunne, a lecturer in Finance at the School of Management and Economics, Queen's University in Belfast, suggests that the structure of the market could be improved greatly if the largest and most active investors were permitted access to the inter-dealer electronic trading platforms. He argues that this move would solve a number of market imperfections and increase the proportion of market activity that is conducted in a transparent way.