Title:
Comparisons
Between Transparency In The United States of America(US) Corporate Bond
Market and European Corporate Bond Market: Criticisms of Transparency
In US Markets From European Markets Perspective
Abstract: This paper
investigates the differences of the impacts of transparency in US and
European Corporate Bond Markets by studying on the criticisms of
transparency in US markets from European markets perspective. The study
assumes two assumptions that are as the level of understanding on
transparency in the European market increase; the spreads decrease and
the volume of trading do not decrease. Then the study construct a
regression on the data sets on all of subset of the European market
selected that consists of the average best bid-ask spread (presented in
proportional spread) and the number of trading volumes. The results
from methodology are giving favorable results or advantages of
implementation of transparency that is consistent with the phenomenon
experienced by US corporate bond markets. Thus, it can be concluded
that it would be optimal to introduce transparency in the markets but
with some limited post-trade transparency.
Authors: Wan
Nur Rahini Aznie and John Board