Unresolved DTO saga furrows path to SEFs

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By Ross Lancaster
10 Oct 2019

Antagonism between the United Kingdom and European Union in Brexit negotiations is making interest rate and credit swap market fragmentation more likely by the day, as market participants in both jurisdictions solidify backup plans to trade on US swap execution facilities (SEFs).

As Brexit drama ratcheted up in the first quarter of this year, EU and UK regulators managed to reach agreements to soothe the impact of a no-deal Brexit on crucial parts of derivatives market infrastructure.   

But the derivatives trading obligation (DTO) — the requirement for some over-the-counter ...

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