Non-banks eye EGBs as primary dealers retreat

Primary dealers warn of further exits as principal trading firms wait in the wings

Europe’s debt management offices (DMOs) have a problem. Primary dealers, which guarantee secondary market liquidity in European government bonds (EGBs) in exchange for the privilege of trading directly with DMOs, are abandoning their posts.

At least seven big banks in the past 18 months alone have decided they will no longer commit scarce capital reserves to warehousing the public debt of certain European countries – and others could follow suit when the European Union’s new trading rules take

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: