Dealers benefit from OTC liquidity split, buy-siders claim

Buy-side firms claim dealers stand to benefit from the division of OTC markets into US and non-US persons; all-to-all trading cannot exist until the break is closed

Buy-side firms in the US claim dealers stand to benefit from the splitting of over-the-counter derivatives markets into two pools of participants – US persons and non-US persons – as a by-product of Dodd-Frank Act rules on clearing and trading. That could hold back the all-to-all OTC market that is envisaged in both US and European rules, the firms say, and their suspicions may be deepened by