Industry nervy as Esma faces Mifid liquidity challenge

Discussion paper asks 139 questions on new transparency regime

george-handjinicolaou
George Handjinicolaou, Isda

Defining liquidity is not easy, but it's a task the European Securities and Markets Authority (Esma) has a matter of months to complete, as it lays out the boundaries of a new trading and transparency regime for over-the-counter derivatives. There is only one certainty at this point – Esma's decisions about what is liquid and what is not will slice up the OTC market in Europe, subjecting products and venues to very different pre- and post-trade disclosure requirements. A May 22 discussi