How significant a threat to exchanges do you believe internalisation by intermediaries could become?
Peter Johnson: Exchanges [in the US] clearly feel threatened by that, which is why they have put various rules in place to prevent internalisation of orders, but the industry in general, and the FCM community specifically, has a strong interest in being able to internalise certain types of trades. I do think that if exchanges relaxed their rules and allowed the market to chose, you would see a lot more internalisation of orders.
Do you think there will be any impact from the fact that regulators in the US are beginning to look at self-regulated exchanges?
PJ: I do, and I think that naturally through that process things will evolve more towards the internalisation direction.
What kind of timescale do you put on that, and will it be a serious threat to exchange volumes?
PJ: Timeframe...