Risk.net – Number of OTC derivatives dealers could double after US reforms

At the moment, there are 15 major dealers in OTC derivatives, according to Kevin McPartland, a senior analyst at the TABB Group and author of a new study,OTC Derivatives U.S. Regulatory Update. He believes the number of major dealers could expand to as many as 30 over the next two to five years, as “the risk controls that are being put in place lowers the barriers to entry”. Those controls include centralised clearing, which vastly reduces counterparty risk for market participants, as well as registered execution facilities, he says.

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