For Many in the Swaps Markets, Reforms Are Seen as a Plus

June 1, 2016 – Media Mention
Risk Intelligence

Chris Greeley was quoted in the Global Association of Risk Professionals’ Risk Intelligence publication regarding the swap market reforms mandated by the Dodd-Frank Act, particularly the use of swap execution facilities (SEF) and central counterparty clearing houses. Greeley told the publication that while SEF trading and clearing have provided much more data to the swap market, it can introduce complications familiar in equities and other electronic markets, such as when algorithmic orders, not necessarily trading on fundamentals, jump ahead of other orders. “Liquidity may drop, prompting market participants to break up large trades into numerous smaller ones and get progressively worse prices as they exit positions,” Greeley said.