With the financial reform bill officially law its time to get down to details. One big area in need of clarity is OTC derivative executions which includes the soon to be defined Swap Execution Facility. This FT article goes through the ins and outs and winners and losers when it comes to SEFs. My comment in the article:
Analysts at Tabb say the interdealer brokers with a few non-broker platform providers will become the dominant trading venues for OTC derivatives. They say established exchanges with clearing houses such as the CME, NYSE Liffe and Eurex are better placed to clear swaps, rather than to trade them. “Trading swaps . . . does not translate well into a listed-exchange model,” says Kevin McPartland, an analyst at Tabb.