Props stopped: non-banks struggle to crack US swaps market

Teza, TransMarket, Virtu among firms held back by regulation and old market practice

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"There is only one reason why the floor trader exemption rule hasn't been clarified, and that is to keep us out of the market," says one PTF head

With incumbent dealers under increasing pressure, the time should be ripe for proprietary trading firms (PTFs) – nimble, low-cost and technologically savvy – to steal a share of the swaps market. So far, it hasn't turned out that way.

Risk.net spoke with 10 PTFs eager to quote prices for the interdealer swaps market. At least four – HTG Capital, Teza Technologies, TransMarket Group and Virtu Financial – have already signed up to one or more Sefs, while DRW is also understood to have had some inv

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