November 20, 2014, The Trade
A top regulator at the US derivatives watchdog has called for the establishment of a foreign regime for the execution and clearing of off-exchange derivatives to mitigate the global market from fragmenting.
Mark Wetjen, a commissioner at the Commodity Futures Trading Commission (CFTC), became the latest high-profile regulator to criticise his agency’s swap trading rules which have resulted in foreign investors shying away from using US electronic venues known as swap execution facilities (SEFs).
By Dan DeFrancesco
November 13, 2014, Waters Technology
With one year in the books, industry members discussed how technology has affected swap execution facilities (SEFs) and what to expect going forward.
Swap execution facilities (SEFs) have now been in place for a year, and it's becoming increasingly clear that while liquidity is king, technology has a crucial role to play, according to a panel of industry members that gathered to discuss SEF technology trends at the Sefcon V conference yesterday in New York, organized by the Wholesale Markets Brokers' Association Americas.
By Gabriel Surprise
November 13, 2014, GlobalCapital
The Commodity Futures Trading Commission needs to grant permanent registration for swap execution facilities in order to avoid hindering the evolution of businesses following the implementation of Dodd-Frank. Additionally, the slew of continuing no-action letters is resulting in regulatory uncertainty, according to speakers at SEFCON V.
"The longer the SEF registration process goes on, the more issues seem to pop up," said Matthew Kulkin, senior associate at Squire Patton Boggs. "At a certain point, market participants are going to want to see product registration so that they can start to carry out the onboarding process and select the liquidity providers they want to use.”
By Douwe Miedema and Mike Kentz
November 12, 2014, Reuters
A trading platform run by Bloomberg LP for swaps, a type of derivative, was down for almost an hour on Wednesday, the data provider said.
Trading on Bloomberg's so-called Swap Execution Facility, or SEF, experienced an outage for just under an hour from 9 a.m. EST (1400 GMT), a spokesman said, because of problems with formatting data for credit default swaps, or CDS.
By Peter Madigan
November 13, 2014, Risk
UBS claims users of its Neo platform are being blocked from trading on Bloomberg's Sef; Bloomberg questions value of aggregation
Bloomberg and UBS clashed yesterday over attempts by the Swiss bank to provide clients of its Neo trading platform with access to Bloomberg's swap execution facility (Sef) - a so-called introducing broker service that UBS claims the Sef refuses to support.
By Lee Olesky
November 4, 2014 Financial Times
The summer of 2010 marked the beginning of the most radical reform in the history of the US over-the-counter derivatives markets with the ratification of the Dodd-Frank Act.
A marathon of rulemaking and implementation of mandates for the reporting, clearing, and trading of swaps finally led to the creation of Swap Execution Facilities, or Sefs, just over a year ago.
By Beth Shah
November 3, 2014 GlobalCapital
Overall credit default swap notional that was reported to swap data repositories last week decreased by 21% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rate derivatives trading that was reported, also saw a decrease of 17% from the previous week.
ISDA reported that there was a 23% decrease in notional cleared for CDS, and 26% less executed on swap execution facilities, compared with the previous week. Rates saw a smaller decline with 13% less volume cleared, but only 8% less executed on SEFs last week.
By Mike Kentz
October 25, 2014 IFR
Markit, the financial information services firm, is in the midst of shutting down its CreditCentre facility operated by its MarkitSERV arm. The platform was one of two services launched in response to Dodd-Frank regulations that focus on migrating over-the-counter swaps onto exchange-like platforms.
The service was set up to act as a central credit checking hub for swaps trades, providing automated pre-trade confirmation that swaps users remained below set credit limits before transactions were executed and cleared in the new Dodd-Frank framework.
By Peter Madigan
October 24, 2014 Risk
"When I trade in a Clob I want to be anonymous," says Eaton Vance's O'Brien. But broker-run platforms claims users want to keep name give-up
An old broking practice is causing unrest in the new world of swap execution facilities (Sefs).
By Peter Madigan
October 22, 2014 Risk
Swap end users raise concerns about Sef competition - and are also worrying about execution rules for NDFs and package trades
Derivatives end users are increasingly worried that just two swap execution facilities (Sefs) - Bloomberg and Tradeweb - are dominating dealer-to-client trading. Innovation coud suffer and costs could rise if there is no competition, they warn.