Revisiting Cross-Border Fragmentation of Global OTC Derivatives: Mid-year 2014 Update

Evidence has emerged that over-the-counter derivatives markets have fragmented along geographical lines since the start of the swap execution facility (SEF) regime in the US on October 2, 2013. That trend has been especially notable for euro interest rate swaps, with European dealers opting to trade with other European parties.

This development has accelerated since the start of mandatory SEF trading in the US from February 2014, and the market for euro interest rate swaps is now clearly split between US and non-US counterparties. This research note provides evidence of this further fragmentation since February, based on an empirical analysis of cleared derivatives data.

Documents (1) for Revisiting Cross-Border Fragmentation of Global OTC Derivatives: Mid-year 2014 Update

ISDA response to ESMA MiFIR Review Consultation

On July 11, ISDA submitted a response to the European Securities and Markets Authority's (ESMA) fourth package of Level 2 consultation under the Markets in Financial Instruments Regulation Review (MiFIR), on transparency for derivatives, package orders and input/output data for...