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.

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.

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