CFTC Commissioner Says Big Banks Dominate SEF’s

“Today, the swap market is concentrated in a few large bank dealers. A review of data from the swap data repositories shows that the largest five dealing institutions are party to about 70% of all reported swap transactions and 80% of the notional amount traded.” Berkovitz said. “Our futures commission merchant data shows that five bank FCMs provide clearing for about 80% of cleared swaps. These high levels of concentration show that the largest dealers possess considerable market power.
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