Q. How have we determined the scope of the service?
A. The service is designed to conform as closely as possible to the European Financial Services Industry Standard of Good Practice on Bond Market Transparency for Retail Investors, drawn up by International Capital Market Association as an industry led initiative in response to calls for greater transparency in the capital market.
Q. Who provides this post trade transparency service?
The service is provided by Xtrakter Limited based on data derived from TRAX. TRAX is an OTC trade matching, regulatory reporting and information services system.
Q. Is the information contained in this service sufficient to allow me to make an informed investment decision?
A. No! The information is designed to help you and your investment advisor make a better informed decision about bonds covered by the service. It should be used in conjunction with the ‘Educational Information’ link and advice from your investment advisor.
Q. What bonds are covered by the service?
A. The service is limited to large investment grade bond issues rated A- or above, prices for which are reported to Xtrakter Ltd through the TRAX2 system. Retail investors will need to consult their investment advisors as to the suitability of these bonds for their portfolios. Some of the bonds covered may not be available for sale to retail investors in some European jurisdictions.
Q. Why does the trade price reporting only cover trade sizes above EUR 15,000 or equivalent?
A. The service sets a minimum trade size because retail bond trade prices (in contrast to equity trade prices) may include a sales charge or mark-up, making it more difficult for retail investors to compare the trade with others based on price alone. The smaller the trade size the greater the impact of this factor. |