The OTC derivatives market is set to enter a new era that will be marked by more commoditized products and intensified competition. As such, it will become increasingly difficult for banks to differentiate their offerings. For the large investment banks that cannot afford to focus on a specific segment, the race to become the low cost provider is about to accelerate.
The shake-up triggered by the financial crisis and the prospect of additional regulations are leading to increased competition in the derivatives industry.
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