Finding Flow: The Case for Electronification in OTC Markets, Its Evolution and Its Future in Illiquid Markets

The last decade has seen electronic trading accelerate rapidly. In just a two-year period, the foreign exchange market alone saw a 71% rise in electronic trading.

ICAP's 2016 decision to spin off the firm's voice broker division and focus on electronic trading is endemic of many signals that electronic transformation of the capital markets is reaching a new point in its evolution—a significant expansion into the OTC arena.

This white paper explores the evolution of electronic OTC derivatives trading platforms. It further examines the benefits of growing adoption of electronic RFQ platforms, for structured and exotic products.