BGC Partners Gains Approval as a Swap Execution Facility from the CFTC
- BGC Partners has been granted approval to operate as a Swap Execution Facility as per new rulings regarding OTC swaps, under the Dodd Frank Act swaps are to be traded and cleared on an exchange.
The US financial watchdog, Commodity Futures Trading Commission (CFTC), announced that BGC Partners has been approved to operate as 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). 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.
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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, as well as increased transparency in the clearing and execution of derivatives trading."
The US financial watchdog, Commodity Futures Trading Commission (CFTC), announced that BGC Partners has been approved to operate as 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). 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.
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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, as well as increased transparency in the clearing and execution of derivatives trading."