The number of trading venues has increased significantly in recent years but this trend will reverse
Industry experts believe the number of futures trading
venues will fall over time following a raft of exchanges and
swap execution facilities coming to market over the past
According to speakers at the joint FOW/Object Trading
webinar Getting ahead in fragmented markets, FCMs will
be forced to re-evaluate their strategies and opt out of
certain markets, due to fragmented liquidity and cost
constraints in the face of derivative market proliferation.
"Once we see liquidity consolidating, to gain benefit from
collateral optimisation, cross-portfolio margining, swap
futures, I think ultimately the number of venues is going to
shrink," said Paul Marks, head of etrading product for futures,
clearing and collateral at Citi.
Across Europe and the US Exchanges are seeking to take
advantage of regulatory changes, and provide market
participants with exchange traded alternatives to OTC
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