Mifid II threatens end to ‘mates’ rates’ in OTC market

Transparency rules for bilateral trades will end relationship-based pricing, banks warn

discount
Mifid II: an end to the best price for the best customers?

Relationships will count for less in tomorrow's over-the-counter derivatives markets, dealers are warning – at least in Europe, where banks will find it more difficult to give favourable prices to their best customers under a draft version of the second Markets in Financial Instruments Directive (Mifid II).

For products traded bilaterally, the regime would require big dealers to share quotes with all their other clients, threatening the industry's traditional practice of tiering prices according

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: