Swap futures no threat to brokers – Icap Sef chief

Paulhac says CME swap future is being pushed as a margin-light product for clients

Laurent Paulhac
Laurent Paulhac, Icap

Swap futures are no threat to volumes in the interdealer over-the-counter market, because exchanges are marketing them primarily to end-users as a lighter-margin alternative to the traditional swap product, according to a senior executive at Icap. "Our client base at Icap is predominantly large swap dealers, and our business is effectively a risk transfer business for interest rate swaps. Swap futures don't really compete with that market. Swap futures, as they're being advertised by the vari