Extent of Sef-driven fragmentation revealed in Isda survey
The consequences of new rules for swap execution facilities (Sefs) have been revealed in the results of a survey by the International Swaps and Derivatives Association, published yesterday, with 37% of respondents reporting significant market fragmentation in foreign exchange options and non-deliverable forwards (NDFs), and a further 42% reporting more limited fragmentation.
The market fragmentation survey was launched on November 19 and focused particularly on the controversial Footnote 88
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