Proposed Regulations for SEFs Could Crimp Liquidity
By Gregory Taggart
Published June 07 2011 Institutional Investor
As it pushes ahead with regulatory changes that promise better liquidity and price transparency in the derivatives marketplace, Washington has good intentions. First, the Dodd-Frank Wall Street Reform and Consumer Protection Act seeks to disperse systemic risk by requiring centralized clearing for clearable or standardized swaps. Then it mandates the creation of electronic trading platforms dubbed swap execution facilities (SEFs). Most swaps — both standardized and made-to-order — currently trade over the counter.
full article 
(free)
