Bonds

Although generally considered to be a wholesale rather than a retail market, bonds are now common investments in private customer portfolios. As a result, the bond markets attract the same degree of attention from the regulator as other retail markets.

The increased product range places an increased burden on a firm's operating and compliance procedures - as do the rules that apply to innovative or derivative-linked fixed income products. Fixed income securities trade over-the-counter - so market makers will be subject to the Capital Requirements Directive (CRD).To find out more about CRD visit our Market Makers page.

However, the financial resources requirement for a firm trading as principal may be reduced under CRD, by adopting sound operational risk controls. In any case, you will be subject to more stringent risk controls under the rules.

CCL can review your controls and advise you on the procedures that you need to adopt to minimise the impact of the CRD on your firm.