Sefs cause two-tier market as Asia OTC liquidity splits

Swap execution facilities started life on October 2 and they have already created separate pools of liquidity in the Asian market. How have Asian firms reacted to the new reality?

Swap execution facilities (Sefs) are critical to regulatory oversight of the over-the-counter derivatives market: what's not measured is not managed, and without forcing dealers to move from bilateral deals to exchange-based ones it will be impossible for supervisors to gain all critical market insight they are looking for.

Dealers, however, are less impressed: "We don't see Sefs offering anything that the traditional broker market didn't and once the mandatory date kicks in we understand why it