Banks hail UK plan to pare scope of taxing pre-trade reporting

UK wants to exempt bonds and OTC derivatives from Mifid rules on pre-trade transparency

The UK Treasury (pictured) is consulting on changes to the rules as part of a broader review

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Dealers are cheering a UK Treasury proposal to exclude over-the-counter derivatives and bonds traded outside of electronic order book venues from rules requiring the publication of pre-trade quotes.

“Pre-trade transparency in OTC derivatives and the bond market has not seemed to bring much value,” says a regulatory expert at a European Union investment bank. “It does bring more of an administrative burden than anything else. I think from this standpoint, the moves that are being contemplated by