SEF Rules Hit Non-US Cross-Border Trading

The requirement from October 2 for swap dealers and regular users of derivatives to transact swaps on Commodity Futures Trading Commission-mandated swap execution facilities (SEFs) was the last piece in the puzzle for US derivatives market regulation, after mandatory reporting and clearing came in earlier this year. However, the rules have left other jurisdictions some way behind. Euromoney: SEF rules hit non-US cross-border trading.

SEFs are the Weak Link in OTC Regulation

Transparent trading of off-exchange swaps via electronic marketplaces known as swap execution facilities (Sefs) was a key goal of the Dodd-Frank Act. Unfortunately, it will result in a market structure for trading over-the-counter derivatives that is fundamentally unfair to many investors.  FT: Sefs are the weak link in OTC regulation

TradeWeb SEF 3rd to submit MAT List…

TradeWeb TW SEF joins Javelin and TrueEX in submitting the list of swaps they wish to Make Available to Trade (MAT).

• SingleDealerPlatforms.Org: TradeWeb SEF is 3rd to submit MAT List
• CFTC Press Release: CFTC Seeks Public Comment on Certification from TW SEF LLC to Implement Available-to-Trade Determinations for Certain Interest Rate and Credit Default Swaps

…And MarketAxess SEF is 4th to submit MAT List

CFTC Press Release: CFTC Seeks Public Comment on Certification from MarketAxess SEF Corporation to Implement Available-to-Trade Determinations for Certain Credit Default Swaps.

CFTC Issues No-Action Relief to SEFs Provided by CFTC No-Action Letter Nos. 13-55 (amended), 13-56 and 13-58 for Swaps in the Foreign Exchange Asset Class

CFTC Press Release: CFTC’s Division of Market Oversight Issues Extension of Certain Time-Limited No-Action Relief Regarding Swap Execution Facilities Provided by CFTC No-Action Letter Nos. 13-55 (amended), 13-56 and 13-58 for Swaps in the Foreign Exchange Asset Class.

CFTC No-Action – Missing the Big Picture

The CFTC has issued a conditional, time-limited no-action letter exempting SEFs from Regulations 37.9(a)(2) and 37.203(a). The Regulations respectively deal with prescribed execution methods and prohibit pre-arranged trading. The no-action letter will only apply to those trades which have been rejected for clearing due to operational or clerical deficiencies. Regulatory Reform blog: CFTC no-action – missing the big picture

The Void Rule No-Action Makes No-Sense

OK, so not all of it. On Friday at 5:55pm (which I guess is better than 11:59pm on October 31) the CFTC issues somewhat expected no-action relief for parts of the SEF rules set to take effect on Friday November 1. KevinOnTheStreet: The Void Rule No-Action makes No-Sense.

SEFs Arrive: A New Market Structure Is Born

Challenge: Now that swap execution facilities (SEFs) have gone live, buy- and sell-side firms will focus on transitioning to a new market structure, connectivity, pre-trade credit checks, margin costs and new workflows. Green Key Technologies: SEFs Arrive: A New Market Structure Is Born.