Asset managers call for greater transparency in the bond market

Asset management firms have called for increased clarity in the bond market, saying that the poor availability of data is undermining transparency in the sector, according to the industry body.

Investment Association members have called for the industry to improve the availability of data by developing an electronic system which would provide real time data on trading volume and costs.

Regulatory efforts will also be needed to reduce market data costs, the association, which represents 24 asset managers with a total of £6.9 trillion assets under management, said.

The lack of data in the fixed income market came under the spotlight after the introduction of Mifid II, which requires asset managers to show how they are achieving the best results for investors when executing bond orders.

Investment Association director of investment and capital markets Galina Dimitrova said: "Asset managers are concerned that the poor availability of data in the bond market is undermining transparency.

"A well functioning bond market is essential to allow companies to borrow more affordably, enabling economic growth and the creation of jobs.

"Our recommendations aim to improve the availability of data, which will ultimately deliver better returns for end investors."