Swap dealers have a fight on their hands. In the four months since Citadel Securities switched on its pricing algorithms full time, the Chicago firm's market-making arm claims to be beating the incumbent banks on price and on speed. The question – for potential clients as well as rivals – is whether it can keep that up.
"They're quoting razor-thin spreads. There's no way they can make money at those levels," says a senior e-trading executive at one European bank.
Paul Hamill, global head of fixe