@ maka, kindly give us a link or an indepth analysis of the above?

no matter how they try i dont see this working very few fixed income dealers would want to deal with one another directly...

Allow me to copy paste what one md of an investment bank said in yesterdays business daily...
...said it was unlikely that banks would significantly affect trading volumes as most investors “will not have faith” in the OTC market.

“Stock brokers will not cut back on the dealing desks because it is unlikely that the plan will succeed, banks should concentrate on lending to the market not taking deposits only to invest in bonds.”

Under the proposed OTC market, buyers and sellers of financial securities agree on the payable price while at the ATS, market forces help to price the bond.
As i said earlier i believe bank dealers wouldn't want to deal between themselves they rather let brokers do all the hustling then get back to them with a preferred rate.By the way its only one or two banks who want this...

adding value doesn't necessarily mean going hi-tech in most developed countries especially the US electronic bond trading systems of the main exchange and those that dont deal with brokers have flopped maybe we can build a successful one who knows...

Do you know which banks want this to come into effect?