Boston, September 27, 2010 – A new report from Aite Group examines burgeoning single-dealer platforms for the OTC market, with a focus on foreign exchange (FX) and fixed income markets. The report highlights strengths and weaknesses of single-dealer platforms and how the relationship between single- and multi-dealer platforms has evolved over the last decade.
Like the listed markets, over-the-counter (OTC) markets have seen fundamental changes in recent years, particularly relating to risk mitigation and increased transparency and price discovery. A core driver of these changes has been increased adoption of electronic trading, particularly in select pockets of the OTC market. OTC markets have seen multi-dealer platforms grow in order to handle increased customer interactions, and many have recently adopted single-dealer platforms.
“Single-dealer platforms are a crucial component of addressing the increasing OTC market complexity,” says Sang Lee, managing partner with Aite Group and co-author of this report. “As regulatory changes push the OTC market toward enhanced structure and transparency, the role of single-dealer platforms will no doubt increase, ensuring that banks can continue to develop and maintain long-term relationships with customers in an increasingly volatile marketplace.”
This 26-page Impact Report contains 15 figures and two tables. Clients of Aite Group's Institutional Securities & Investments service can download the report.