Block TRACE again

September 29, 2006

So I checked out the TRACE website the other evening, after following up Accrued‘s post. There are different rules for reporting blocks, obviously designed to protect dealers offering block liquidity.

About these ads

2 Responses to “Block TRACE again”

  1. Tom Graff Says:

    Yeah, they can usually mask the real size on large trades. Also, most bonds that require real price discovery, like bonds with unusual coupon structures or call features, are not TRACE eligible. PLUS, those are exactly the type of bonds that are usually sold to retail investors.

  2. etrading Says:

    Thanks for that insight Tom – I’ve had some contact with the structured notes business recently, and realised there’s not so much price transparency there, especially for retail.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s