European Bond Dealers Form Association to Discuss Trading Operations
Primary dealers in the European government bond markets have formed an association to tackle market issues and operational trade processing practices. The European Primary Dealers Association (EPDA) -- which is affiliated with The Bond Market Association in the United States -- is the first dealers' forum to address specific primary and secondary markets issues.
The group's creation occurs three months after Citigroup ignited a crisis when it executed an 11 billion euro denominated bond trade in two minutes through the electronic MTS platform. EPDA says that a key focus is for an efficient and liquid secondary market through voluntary trading guidelines and improved market practices.
An EPDA official says initially it will focus on issues of importance to its overall membership, in particular to improve the auction, clearing and settlement practices by promoting gradual harmonization.
EPDA membership currently consists of the top 20 dealers active in the markets, though there are approximately 75 primary dealers in the euro government securities market. More primary dealers will be invited to join as associate members.