Evolving OTC landscape – update


Good update on the evolving OTC landscape from Bill Hodgson of The OTC Space.

Bill and colleagues, look at Central Counterparties (CCPs) , Swap Execution Facilities (SEFs) and Swap Data Repositories (SDR) across asset classes.

Here is the diagram showing current plans by providers of would be SEFs.

Caplin View on SDP routing to SEFs: As we have previously mentioned here, here and here, buyside firms will not want the cost of connecting to many SEFs, and we continue to see this as an opportunity for banks to enhance their Single Dealer Platforms, by providing clients with SEF ‘routing’ capabilities (for standardised swaps) through to an acceptable number of SEF’s (more than one, but perhaps not many more, ie 2 or perhaps 3).

Full article here

One Response

  1. […] On the same single dealer platform, clients should be able to select either traditional risk based bilateral execution (where permitted), as well as view aggregated SEF liquidity, and through the use of smart order routing algorithms, optimise the execution of trades, across SEF/OTF venues. For more recent posts on SDPs and SEF aggregation look: here, here, and here. […]

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