Secretive start-ups eye uncleared OTC risk reduction

Dividing the over-the-counter market into cleared and uncleared products creates extra risk and inefficiency, critics claim – it also creates an opportunity for services that can repair the damage. Start-ups and established firms alike are now jockeying for position. By Duncan Wood

Outside a small circle of dealers, few people have heard of LMRKTS and NetOTC, but these secretive start-ups hope to become some of the biggest players in the reshaped over-the-counter derivatives market. They, along with established firms such as TriOptima and CLS Bank and a couple of other players currently unwilling to show their hands, are vying to recreate the risk efficiencies lost in the