Quick View: OTC swaps fight brews (Financial Times)

Despite the CFTC’s postponement of the SEF proposal release, debate still came on quickly as to their prescriptive approach surrounding trading model. These quotes are based on my commentary that we will publish early next week.

“With liquidity so thin, under this new model the simple presence of a quote will alert the rest of the market that someone has an interest in a certain contract,” says Mr McPartland.

“This type of information leakage will create a huge opportunity for others to game that order by trading in front of it which could potentially move the price against the quote requesting firm,” he says.

Read the full story at FT.com

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