OTC market fragmentation rises in wake of Sef trading
Research shows geographical split in swap volumes
Swap execution facility (Sef) trading has accelerated the fragmentation of the global over-the-counter derivatives market since its introduction in the US in October 2013, according to research from the International Swaps and Derivatives Association (Isda).
In an analysis of the euro interest rate swap market, Isda found the average percentage of such trades executed between European dealers from January to September 2013 was 75%. In the next four months, which followed the introduction of Sef
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