Risk interdealer rankings 2011: Brokers

Interdealer brokers have always stood at the crossroads of the over-the-counter market, but the way they direct traffic is changing rapidly. By Alex Monro

If electronic trading is the future of the interdealer derivatives market, August was a reminder that there are advantages to the old way of doing things. As volatility spiked, liquidity on interdealer broker platforms suffered – bid-offer spreads more than trebled in some cases, prompting many dealers to pick up the phone and try to negotiate a better price. It became difficult to execute large electronic trades, and some brokers snipe that rival platforms were unable to provide quotes for