functioning of the worldwide financial system. The vast majority of financial asset classes
only exist in the OTC environment and consequently the efficient functioning of these
markets is essential for the free flow and availability of capital, the mitigation of risk and
investor choice. This paper assesses the current status of the trading, transaction
processing and risk management infrastructure that supports the wholesale segment of the
OTC markets and sets out some recommendations that we believe would improve the
quality and robustness of this infrastructure.