Swap futures no threat to brokers – Icap Sef chief

Paulhac says CME swap future is not a vehicle for interdealer risk transfer. Others claim some market participants have replaced swap portfolios with the new contracts

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 various

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