Mifid II will strangle package trades, industry warns

Disclosure rules may catch multi-part trades if any component is deemed liquid

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Liquid trades will be subject to new European transparency rules from 2017

The ability to trade a package of two or more instruments at one price, in one go, may become a thing of the past – or leap in cost – buy-siders fear, if incoming European transparency rules force dealers to disclose the details of all trades they conclude.

Popular packages combine multiple points on the over-the-counter swap curve, for example, or a variety of bonds, or a bond and a credit default swap (CDS) – reducing execution risk for the customer, which would otherwise have to trade each of

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