STIR Trading in Banks

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Is most STIR trading in banks done using exchange traded derivatives, ie euribor, short sterling, eurodollar or is the cash and over the counter derivatives market big as well?
 
Both really - Banks and their customers such as funds/corporates/institutions use ex. traded products heavily but also FRA's, Swaps, Depo's etc....the OTC/cash products are still big business and it's worth mentioning that where a decent, liquid listed STIR doesn't exist e.g. on en emerging market they are pretty much your only choice if you want to hedge or speculate on interest rates.

In the real world if the Money Market desk at a bank gets hit by a customer in size on an OTC instrument they'll usually try and lay it off in futures and vice-versa - bank traders will be constantly aware of the spreads between listed and OTC contracts so will pick and chose where to trade based on liquidity and rate and ensure that pricing is tight by constantly looking for arb opportunities.
 
lol.

theres nothing like having a chat with a broker on a stir desk and hes going on about his order for 10000 dec8 euribors, then having a beer with your mate at an arcade the same afternoon and listen to him bitch about 'those damn automated trading engines playing round with the dec8 spreads all day!'

the broker would probably find it funny too - except he dont give a damn!

crazy world.
 
In other products, are exchange traded derivatives outnumbered by over the counter derivatives, how big are the cash government bond markets and spot fx etc. is this still big business in the banks, is otc derivatives growth outpacing exchange traded derivatives?
 
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