It is inevitable that some portion of the OTC derivative market will see an execution mandate. I have been an outspoken believer that this change will happen at the hand of Swap Executions Facilities (SEF) much more so than traditional exchanges. This article in the Hill discusses the political angle of this move towards an OTC derivatives market with more transparency around price discovery.
“I think the majority of trading is going to go through swap execution facilities,” Kevin McPartland, senior analyst at TABB Group, told The Hill. “The swap execution facilities, the interdealer brokers, already have platforms to deal swaps.”