March 2007

Response to CESR's call for evidence on non-equities market transparency

The Exchange has responded to CESR's call for evidence on non-equities market transparency. We do not believe there to be conclusive evidence of market failure, or of a need for mandatory pre or post trade transparency. However, we believe that if the Commission does decide to take action, it should be limited to the specific area of retail participation in the most liquid bonds, and that any guidelines produced should be subject to a small scale pilot exercise to determine whether there is a need for greater transparency, and whether this improves retail participation.

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