A Year Later, Dodd Frank Causes Banks to Shrink (Bloomberg)

Wow – it really has been a year. Even more amazing is that Bear, Lehman and the rest were almost three years ago. Things have changed. I’d argue even as early as 2009 the swaps markets were more transparent than ever before. The bottom line today is the rules are coming and everyone knows it (even if they won’t admit it) and because of that the move to more automation is already happening.

“There certainly have been shifts in approach and strategy for a lot of people,” said Kevin McPartland, a [principal]  in New York with Tabb Group, a financial markets research and advisory company.

Even as regulators rush to finish rules governing swaps, there has been a “slight uptick” in electronic trading to make sure the system works when regulations are ready, he said.

Read the full story at Bloomberg.com

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