“If these rules require market orders to be displayed to multiple market participants before execution, the interest rate swap market may begin to trade in smaller notional sizes with an increase in transaction ticket volumes converting a deep and liquid market into a shallow and broad market.”

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“If these rules require market orders to be displayed to multiple market participants before execution, the interest rate swap market may begin to trade in smaller notional sizes with an increase in transaction ticket volumes converting a deep and liquid market into a shallow and broad market.”

—Supurna VedBrat, co-head of the market structure and electronic trading team within BlackRock’s portfolio management group in New York, on the impact swap execution rules could have on the interest rate swap market. The rules are being finalized by the U.S. Commodity Futures Trading Commission.

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