A study published on 2 July 2012 investigates the potential impact of MiFID II's pre-trade transparency proposals on the fixed-income market, its investors and the European economy as a whole.

The paper, produced by TABB Group and commissioned by the Association for Financial Markets in Europe (AFME), is based on comprehensive interviews with sovereign issuers, corporate issuers, investors, trading venues and dealers. Trax, under its former name, Xtrakter, contributed fixed-income data for use in the report.

The study illustrates that the current proposals to reform pre-trade pricing practices in the fixed-income market are likely to seriously undermine trading firms' ability to provide liquidity. This would mean increased trading costs for investors and make it more difficult and expensive for governments and companies to raise capital.

Download the full report from the AFME website