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 n