Interest Rate Swaps have taken over for CDS as the OTC derivative product in focus for market participants and regulators. They look to be the products that will see the biggest jump in clearing once new rules are in place and they also seem to be the first headed for more electronic trading. My two cents in the FT article regarding the IDB’s opportunity here:
“A good portion of the swaps market activity is dealer to dealer, and the inter-dealer brokers handle the majority of that volume,” says Kevin McPartland, a senior analyst at Tabb Group.