Today, FIA EPTA published a paper on the importance of Secondary Markets for the transition towards sustainable capital markets.
FIA EPTA believes the key to a successful green transition are the secondary markets because they enable asset holders to buy or sell ESG products on behalf of end-investors, insurance holders, or pension participants. Market makers provide liquidity and choice to investment managers to adjust their portfolios, pursue their trading & investment strategies and manage their risk, at low cost and with ease globally. To be fully accepted by market participants, ESG products need to be handled equally to traditional products, it is important that investors can access sufficient liquidity in these assets. As the demand for sustainable products is growing, and more investors choose to invest in sustainable products the market as a whole should adjust to offer these new products. In our 2021 survey, 60% of FIA EPTA members are already active and two-thirds are looking to start or expand their liquidity provision in ESG products.
To continue to read, please download the paper.