Regulation will change markets, but slower than expected
But market participants say they are in the early stages of a transformation that could accelerate in the coming years
Despite the raft of regulatory initiatives continuing to hit over-the-counter markets, the lack of incentives to push clients towards new avenues of execution have slowed the pace of adoption, with a large proportion of flows remaining firmly in the domain of a handful of dealers, according to panellists at the 41st annual FIA conference in Boca Raton.
While the landscape, market structure and rules have changed, the majority of electronic trading is still carried out via request-for-quote (RFQ)
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