the-interdealer-always-wins

The interdealer always wins

The uptick in trading volumes since the subprime blowout has meant big profits for interdealer brokers.
Playing in the financial markets tends to be a zero-sum game, which is to say that one guy's profit is another guy's loss. But there have been few obvious winners from the subprime turmoil.

Among that select group are the interdealer brokers who take a margin for executing trades on behalf of securities dealers. As the investment banks continue to admit ever-greater losses, profits at the main interdealers are all up thanks to the big increases in trading volumes.

We have seen many crises in the financial markets, but this was a once-in-a-lifetime event, says Don McClumpha, Asia-Pacific deputy chief executive of Icap, the world's biggest broker.

On August 16, 2007, at the height...
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