Bloomberg: Evolution of the OTC Swaps Market

Evolution of the OTC Swaps Market



As reforms mandated by the Dodd-Frank Act transform the over-the-counter derivatives market, financial institutions are working to make the appropriate preparations, even as regulators continue to address open questions. In a recent Webcast, Bis Chatterjee, Head of Credit Trading at Citigroup, and Nathan Jenner, COO, Fixed Income E-Trading at Bloomberg, took a closer look at the many changes taking place in the OTC swaps industry, such as mandatory clearing.

This summary details that exchange and will answer the following question: What lessons have been learned since March 11 2013 when swap dealers, and the hedge funds most active in the market, were required to be clearing certain eligible swaps?

This paper will also discuss the latest developments around the new swap execution facilities, as well as the “futurization” of swaps being brought about by margin treatments, standardization and centralized clearing.


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