Total Derivatives’ interest-rate derivatives survey: What price liquidity?

	return to the Total Derivatives’ 2011 interest-rate derivatives survey: Results index

DERIVATIVES DEALERS HAVE grown resigned to stormy markets and pressures on profitability. At many desks, balance sheet has been cut and revenues are flat. Critically, many markets are suffering extended periods of illiquidity, punctuated by short-lived bursts of abundance. Deal flow swings between feast and famine. The direction of travel for derivatives regulation is towards central clearing, but key aspects remain unresolved, creating uncertainty and threatening to increase dealers’ and end-users’ costs.