Loans and financial matters

The global swaps market is much like the global forward and over-the-counter options markets. It is made up of dealers, which are banks and investment banking firms. These dealers make markets in swaps, quoting bid and ask prices and rates, thereby offering to take either side of a swap transaction. Upon taking a position in a swap, the dealer generally offsets the risk by making transactions in other markets. The counterparties to swaps are either end users or other dealers. The end users are often corporations with risk management problems that can be solved by engaging in a swap-a corporation or other end user is usually exposed to or needs an exposure to some type of risk that arises from interest rates, exchange rates, stock prices, or commodity prices. The end user contacts a dealer that makes a market in swaps. The two engage in a transaction, at which point the dealer assumes some risk from the end user. The dealer then usually lays off the risk by engaging in a transaction with another party. That transaction could be something as simple as a futures contract, or it could be an over-the-counter transaction with another dealer.
Risk magazine conducts annual surveys of participants in various derivative products.  One survey provides opinions of banks and investment banks that are swaps dealers. In the other survey, the respondents are end users. The results give a good idea of the major players in this market. It is interesting to note the disagreement between how dealers view themselves and how end users view them. Also, note that the rankings change, sometimes drastically, from year to year.