The first interdealer trading platform aimed at opening up credit derivatives markets to new competition has hit roadblocks due to resistance from some banks that dominate such trading, according to several people familiar with the situation. Derivatives markets continue to revolve around the small group of dominant banks, and credit markets have become more - not less - concentrated since the 2008 global financial crisis. Regulators have sought to change that by opening up trading to new competition to increase transparency and reduce the concentration of risks seen as one of the factors that contributed to the crisis. GFI Group, a New York-based broker with an active interdealer credit platform, has been planning to add fund managers for several months. But the brokerage has had to change terms of its trading and multiple funds that planned to participate have pulled out after they came under pressure from some large banks, according to seven people familiar with the situation. A
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