European bond markets still facing challenges in 2nd year of MIFD II/R implementation


20 December 2019 The International Capital Market Association (ICMA) has today published a new report on the impact and challenges of MiFID II/R for the international bond markets two years after the regulatory regime took effect.

The report is intended to provide an overview of the second year of MiFID II/R, drawing on discussions and feedback from ICMA’s diverse sell-side and buy-side members and trading venues active in the European bond market, covering primary market issuance, secondary market trading, and research unbundling.

Confirming the findings of the one-year report published in December 2018, the new report indicates that, while the implementation of MiFID II and MiFIR has not significantly impacted liquidity in the European bond markets, it has not fully achieved its objectives and challenges remain.

The main conclusions are that:
  • In primary markets, unintended consequences of the product governance and PRIIPS regimes continue to adversely impact retail investors.
  • In secondary markets, electronic trading has further increased in 2019, and price discovery has improved slightly, but post-trade transparency in secondary markets does not seem to have improved compared to 2018.
  • Research rules have been implemented differently, both within Europe and globally, and are being reviewed by regulators.

Download the report

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