Shift from OTC to Listed?

What are fellow monkeys thinking: Will listed products surpass otc one day completely? We've seen listed volume doubling during the financial meltdown and exchanges are starting to list more and more sophisticated products.
What are the perks of buying a swap over the counter instead of electronically at an exchange? Is OTC doomed?

5 Comments
 

I think there's still room for OTC products like exotic credit/rates derivatives, basically anything that requires a high degree of customization. If you're talking plain vanilla swaps though there will be almost zero OTC trading (at least in the US) when Dodd-frank is in full effect. It really will be a battle between SEFs and futures exchanges when it comes to IRS, see a happy balance between the two going forward.

 

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