Citi's Monaghan: PAI a Challenge; SEFs Will Route, Not Match

In particular, those functions that deal with broker relationships and collateral management will move their way up, with the overall cost of a trade varying widely, based on particular clearing treatment.

"Before the cost was quite simple, essentially buy at 10, sell at 12," Monaghan says. "Now, to trade a swap it's buy, collateralize, determine how much it will cost to fund that, and then determine the route it should go. You could see a screen price just one tick away, and yet it's very