Two rival groups of banks are working towards establishing interdealer broker firms in interest rate and credit derivatives, as part of their efforts to cut trading costs and take control of market infrastructure.

If successful, the developments could put pricing pressure on the interdealer broker incumbents, including BGC Partners, GFI Group, Icap and Tullett Prebon. The interdealer broker industry’s revenues in credit and equities reached $7bn (€4.5bn) last year and is expected to reach $9.3bn next year, according to strategy consultancy Celent.