Removing the barriers to an efficient market

Everyone you talk to in the market today raises the sameconcerns: rising costs and increased regulation are increasing barriers acrossthe derivatives industry.

Everywhere you look, the barriers are rising: rising costsmeans fewer new entrants into the market, increased monopoly of infrastructureprovision is raising the barrier to competition and new rules on capital areincreasing the barriers for some firms to service clients.

The derivatives industry is in a new post-crisis era. 

The post-crisis era is defined by a long-term low rate environment, increasedfragmentation of liquidity and greater regulatory oversight.

But the business models that have emerged in the new era for market participants and infrastructure providers are not creating a sustainable future for the industry. 

Ifcosts continue to rise and the number of players in the market continues tofall, the market will dwindle to nothing.

There is a need for radical reform of the market. But to besustainable, this reform must not come from regulators but from the marketitself.

New models for co-operation need to be built,re-mutualisation and democratisation must take centre stage as a new era isbuilt on firmer foundations than the current one.

FOW, in partnership with Object Trading, today publishes anew whitepaper exploring how the barriers to entry have risen since thefinancial crisis and asks what can be done to bring them down.

To download your free copy, click here.