Buy side unimpressed with Mifid II cost transparency rules

Clients question value of receiving dealers’ swaps profit margin data

In an age where everybody in finance seems to be striving for an information edge, you would expect buy-side firms to welcome rules requiring banks to disclose all of the charges and profit margins embedded in derivatives quotes. These details could surely be used as a weapon to play banks off against each other and drive down prices.

You would also be wrong. Risk.net spoke with eight corporates treasurers, asset managers and hedging consultants about the new derivatives cost disclosure