Botched copy: Esma delivers cut and paste pastiche of Trace

Mifid transparency mishmash misses key aspects of US system it emulates, say dealers

Imitation is the sincerest form of flattery, they say. But what if the imitation falls short of the original?

That is the outcome dealers fear in Europe, where plans to amend misfiring bond market transparency rules clone some – but only some – of the US’s successful trade reporting and compliance engine (Trace), the regime used to disseminate US bond data.

According to critics, the proposal would subject illiquid bonds to real-time transparency requirements in the EU – an eventuality avoided