CFTC Grants Longer-Term Registration Status to 18 SEFs

The US Commodity Futures Trading Commission (CFTC) has issued a series of orders granting registration to a total of eighteen 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 facilities (SEFs), granting them more long-term registration status, according to a CFTC statement.

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By definition, SEFs are trading facilities that operate under the mantle of the CFTC’s regulatory oversight for purposes of trading and processing 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. SEFs previously received authorization to be created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to help provide better pre- and post-trade transparency and accountability to the swaps market. The SEFs approved for registration are all household names in the financial services industry, and include the following entities:

• 360 Trading Networks Inc.
• BGC Derivatives Markets, L.P.
• Bloomberg SEF LLC
• Chicago Mercantile Exchange Inc.
• DW SEF LLC
• GFI Swaps Exchange LLC
• ICAP Global Derivatives Limited
• ICAP SEF (US) LLC
• ICE Swap Trade, LLC
• Javelin SEF, LLC
• LatAm SEF, LLC
• MarketAxess SEF Corporation
• SwapEx, LLC
• Thomson Reuters (SEF) LLC
• tpSEF Inc.
• Tradition SEF, Inc.
• trueEX LLC.
• TW SEF LLC.

Prior to the CFTC order, the aforementioned SEFs were operating under temporary registration status, and have now garnered a more concrete regulatory stature. Following the new registration order, the SEFs will still be required to demonstrate renewed compliance under the applicable provisions of the Commodity Exchange Act (CEA) and CFTC regulations, which includes Part 37, as well as any future regulations, amendments, guidance, and interpretations as dictated by the CFTC.

In addition, the CFTC still will provide temporary registration for five remaining SEFs that have not yet achieved a change in registration status. Subsequently, CFTC staff is continuing with registration reviews for these SEFs – pending a review, these facilities will continue to operate under temporary registration status in the interim.