ICAP files SEF Application with CFTC

Interdealer, ICAP, has announced that it has filed an application with the CFTC to be a Swap Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term Facility (SEF) in compliance with the Dodd-Frank Act. According to the firm, ICAP plans on operating a SEF across multiple assets,including interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, credit default swaps, equity derivatives, commodities, and NDFs. The SEF will be operated using a request for quote and central limit order book system, as well as offering block trade capabilities, electronic crossing and execution via brokers. The SEF will be headquartered in New Jersey.

With the news, ICAP becomes the latest firm, among a growing list of companies that have applied for SEF status from the CFTC. While essentially electronic trading platforms, the SEFs apply central clearing and pre and post trade credit monitoring to meet Dodd-Frank rules.

Heading the ICAP SEF is John Nixon, Group Executive Director, Americas at ICAP, who was appointed Chairman, CEO and President of the SEF. Commenting on the news, Nixon stated in ICAP’s public statement that “the filing of our SEF application is a milestone for our organization, but it is also very much a logical evolution of our longstanding efforts to serve the needs of the OTC derivatives marketplace. Since its foundation, ICAP has developed marketplaces designed to provide its customers with effective and efficient means to take and manage risk. ICAP has invested heavily in technology that has permitted it to offer customers the ability to execute transactions on a fully electronic basis, or with the assistance of a broker. With our expertise and experience in operating regulated markets, the quality of our technology and the depth of our customer relationships, we look forward to our SEF serving as a leading facility for the trading of swaps in the new regulated landscape.”