OTC market resisting swap futures threat

Swap futures yet to break out, but backers see margin, accounting and Citadel as tailwinds

Military shields
Defence of the realm: OTC market proving resilient to threat of swap futures

Four years ago, asset managers were captivated by swap futures, which seemingly offered all the economic benefits of swaps without any of the regulatory headaches. Firms such as BlackRock and Eaton Vance spoke openly about ditching over-the-counter derivatives if the new rival attracted sufficient liquidity.

The mood now could not be more different.

"We are set up to trade swap futures, but we don't bother," says the head of rates at a large asset manager in New York. "The dealer community has

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here