Whats happened to IR Swaps in EUR, GBP & JPY?
Daily Volumes in these three major currencies seem to have dropped significantly around the Oct 2 date.
So looking at the History view in SDRView Researcher, we see the following:
We can observe the following:
- Trade counts dropped significantly on Sep 26, four days prior to Oct 2 and have remained lower than the Sep daily average.
- This effect can also be seen in GBP and JPY (see for yourself by using SDRView Researcher).
- Now this could be down to a quiet market in these currencies
- Or it could be down to US firms doing less EUR, GBP, JPY trades
- Either because SEFs are/were not fully ready for these currencies
- Or because non-US firms are not yet on board with SEFs, so the counterparts to these trades are not there
- All of which means that either these trades are not happening
- Or possibly they are being booked in Europe or Japan
- Either way not a desirable consequence of the Oct 2 deadline.
Lets follow the data and see when and whether EUR, GBP, JPY volumes return to their norms.
You can wait for my next blog article or you can follow the data yourself in SDRView.