Clive Connors, a longtime interest-rate swap player, recently started up Connors International, a new over-the-counter discount money broker using a flat, $10 per million fee pricing structure, instead of the standard sliding fee structure used by the major inter-dealer brokerages that charge more for trades further out on the curve. Connors, who previously worked at Tradition North America and Tullett Liberty, believes the current pricing structure wrongly implies that inter-dealer brokers are assuming yield-curve risk, when they are just lining up a bid with an ask.

The group brokered its first transaction last Thursday, a $200 million five-year trade, bringing in $2,000 in fees from each party. The same deal via traditional inter-broker dealer, assuming a 0.01 basis point fee, would cost each party $9,200.

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