"Derivatives move from banks into the shadows": FT.

FT: “Shadow financial institutions have taken advantage of the wave of new regulation to steal the lion’s share of the derivatives business from the major banks in a blow to those institutions’ profitability, according to traders.” “Bankers fear the trend, underpinned by tougher capital rules for the banks, can only increase as regulations come into force encouraging bilateral over-the-counter deals on to exchanges, where pricing is more transparent. The obligatory clearing of trades, theoretically in place since the end of last year, will further erode margins.”