Today in the bond markets, the traditional broker/ dealers have also become much less willing to hold large positions on their balance sheet. This results in large part from Basel III capital and liquidity rules even though these are not yet fully in place. The new capital rules require much more capital, perhaps four times as much as before, to be posted against trading book positions and the new liquidity rules disadvantage overnight repo financing which makes inventory holding more costly. In the US we also have Dodd-Frank and the Volcker Rule and in the EU, MiFID II, MiFIR and the FTT (which we consider in the final section) which give rise to further issues for market making