The US financial watchdog, Commodity Futures Trading Commission (CFTC), announced that BGC Partners has been approved to operate as a Swap Execution Facility (SEF). BGC Partner’s subsidiary, BGC Derivative Markets, L.P, received temporary registration by the CFTC to trade from the second of October.
SEFs are new trading entities that clear OTC products, such as OTC interest rate and credit swaps, in addition, the Dodd- Frank Act deemed NDFs as a financial instrument requiring mandatory clearing.
BGC, a leading financial services provider, has developed a sophisticated technology infrastructure to service participants. This includes, fully-compliant execution methodologies, such as anonymous Central Limit Order Book (CLOB), name disclosed Request for Quote (RFQ) system, intra-day electronic auctions, indications of interest, and voice managed orders for blocks and non-blocks.
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In addition, market participants will be able to utilize BGC’s platform to segregate US person/non-US person transactions, on both a graphical user interface (GUI), and application programming interface (API) via instrument choice and contra-counterparty filtering.
“Receiving CFTC approval to operate a SEF, marks the next chapter for our company and our clients, and is a positive step forward for the marketplace,” said Shaun D. Lynn, President of BGC, in a statement.
“BGC has utilized the strength of its leading proprietary technology, and is fully prepared for a new era of derivatives transactions. We are excited to offer clients deeper access to liquidity, as well as increased transparency in the clearing and execution of derivatives trading.”