Dealers benefit from OTC liquidity split, buy-siders claim
Buy-side firms claim dealers stand to benefit from the division of OTC markets into US and non-US persons; all-to-all trading cannot exist until the break is closed
Buy-side firms in the US claim dealers stand to benefit from the splitting of over-the-counter derivatives markets into two pools of participants – US persons and non-US persons – as a by-product of Dodd-Frank Act rules on clearing and trading. That could hold back the all-to-all OTC market that is envisaged in both US and European rules, the firms say, and their suspicions may be deepened by revelations from European trading platforms that dealers have urged them not to open their doors to US
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