Echoing malpractices in the financial markets that regulators have to either ignore, TradingdeGuerrillareproduced in this space article “Chronicles bond market SEND” that Francisco Llinares has posted on his blog to denounce the manipulation and lack market transparency Spanish AIAF Fixed Income.
Summary:BME recently created an electronic fixed income market (SEND) with the aim of protecting investors giving real-time access to accurate market information (positions, fork supply and demand …) and operating in such assets. To date they listed a few issues with liquidity and no intermediary agents put numerous obstacles to change the situation. The result of all this is the price of these products in the AIAF market where dealers protected by the opacity of it freely agreed between prices to the detriment of investors.
Chronicles bond market SEND
Francisco Llinares
is readygo appreciating the motives BME to create the SEND market . They seembe: we must comply with MIFID, which says that markets have to be transparent, especially for retail issues placed. But that compliance represents giving up a right seigneur established for many years . What solution could give you? Very easy: a market that meets the requirements of MiFID and operated on the other is created.
After intuit this, I find a new meaning to the acronym SEND: tomfoolery NASIO pa system Desimulá
I tried to put orders in a large box and have told me not to think operate in that market.
I asked another member of AIAF to enter more emissions and told him to be committed to provide liquidity to these emissions (an elegant way to throw balls out).
Every day you are making small orders in the AIAF of listed securities, and none of those orders is entered in the SEND.
The vast majority of supported emissions have never had any place buy / sell. Although still they are hiring in the AIAF.
Now I’ll make a prediction:It does not take many days when trades are executed in the AIAF a significantly worse prices than can be seen in the fork of the few stocks that have positions in the SEND.
The problem is: the acronym “AIAF” mean Intermediaries Association of financial assets . Gentlemen, this is not a market. A market is something else.
The main problem is that this partnership profit was absorbed by Bolsas y Mercados Españoleswithout first being converted to a market as narrated in the fables of MiFID.
What can we do the “bobos” in this situation?
Do not buy any financial asset that does not have liquidity and a tight hairpin on the SEND market.
Not operate any intermediary who refuses to place orders in this market.
Holders emissions now traded on the AIAF (Endesa, Fenosa, etc.) should require companies that enter such securities listed on the SEND. A little note as headline stating the reasons and indicating the harm posed to the owners if they do not (if someone puts a sample letter and mail each company to send it , make it easier holders).
Require the CNMV that no issue placed the general public and whose nominal less than 50,000 euros to be negotiated in the AIAF under any circumstances, it failed to comply MIFID (I want to know which agency is responsible for enforcing the MIFID to CNMV).
Explain to the CNMV that the MIFID was done to protect small investors from intermediaries rather than the other way around.
Spread in all financial blogs these slogans . It is the only way to prevent the SEND stillborn market and serve as a cover for operations that go against the MIFID. I urge all blogs to disseminate this post. I do not care if you do not cite the source, it is important that the public understands something about this. If anyone is encouraged to make a ” meme ” I’ll be happy to link to it .
We are playing very seriously. If we do not get our rights in this respect, regulators will treat us as we have deserved. This is a war between sheep and wolves(I avoided using the word sheep), and if we do , “beeee”, you know the end (in Valencian “be” is fine, everything is fine and not to do anything). Those who believe they exaggerate, that read related articles.
Those who do not identify because they think operate in fixed, that no mistake. Investment funds operating in the AIAF market, and can win the titles at the price you want .
If someone believes they should initiate other attempts to bring this issue to a successful conclusion , let him say and do whatever is possible.