RBA's Debelle: electronic trading may revive market making in fixed income

The effect of reduced market-making capacity in fixed income – both in Australia and globally – is an intended consequence of banking regulation, the Reserve Bank of Australia (RBA) confirms. However, speaking at the KangaNews DCM Summit in Sydney, RBA assistant governor, financial markets, Guy Debelle, says he believes developments that are currently in their infancy may act to mitigate the impact of constrained bank trading books over the coming years.