Lack of average pricing holding back Clobs, says buy side

To move from block request-for-quote swap trading to exchange-type execution, managers need the ability to average-price their trades. But with no one taking responsibility for developing the technology, they are frustrated

Some argue average-pricing a series of swaps with different characteristics is too complex

Asset managers are a tricky client for any dealer. They execute huge block derivatives trades at billions of dollars of notional at a time, but require a special infrastructure to suit their unique set-up.

This is because they don't take exposure themselves, but on behalf of their sub-funds. So after the block trade is executed, it's broken up into smaller pieces and allocated to the relevant fund