Markets: Frozen in time (Financial Times)

This article is a discussion of how information and market data flows in the current OTC derivatives market.  Proposed legislation told us that much of this is set to change, although the complexity of some products and the capital required to create them will still leave the major dealers at the center of much of the information flow.

The idea is that forcing banks to spin off their swaps desks would level the playing field and shatter the oligopoly of big dealers. “The [Senator Blanche] Lincoln proposal to spin off swaps desks, a potential proprietary trading ban and far-reaching clearing and execution mandates could be game-changers for the entire market based on the bill’s final wording,” says Kevin McPartland at Tabb.

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