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European states to change trade laws due to strains on European debt market.

To help them deal with some of the most difficult market conditions in years, certain euro zone governments have relaxed regulations for the banks that manage the trading of their government debt, officials told Reuters.


Officials in the Netherlands and Belgium told Reuters they have reduced different market-making responsibilities defining how aggressively these banks should trade their debt, out of 11 main euro area debt agencies Reuters contacted.


According to France, Spain, and Finland, their regulations are already set up so that they automatically account for market pressures. According to Germany and Austria, they don’t enact such laws.


Debt managers are adjusting to a less liquid, more unpredictable market as the European Central Bank ends years of buying the region’s debt and investors become leery of stocking up on government bonds due to the conflict in Ukraine, an energy shock, and unrest in Britain.


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