The much awaited Dodd Frank rulings on OTC derivatives have taken shape as BloombergSEF LLC, an affiliate of Bloomberg becomes the first approved trading platform to offer multi asset swaps instruments. US regulator, CFTC, granted the firm temporary registration as the Dodd-Frank derivative compliance mandates take effect later this year.
Bloomberg was the first firm to submit its application to the CFTC in June 2013. The number of firms who submitted their applications has reached six as State Street joined the pact. Other firms include; MarketAxxes, Tradeweb, GFI and TeraExchange.
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“The implementation of SEFs is one of the more meaningful ways the Dodd-Frank reforms have sought to increase transparency and standardization in the swaps market,” said Ben Macdonald, Bloomberg’s Global Head of Product and President of Bloomberg SEF LLC in the official press briefing. “As one of the largest independent swaps trading platforms, operating a SEF for our clients is a logical progression for Bloomberg. While clients can continue to execute on our traditional derivative platforms until the CFTC’s mandatory compliance deadline, receiving approval ensures our readiness to provide them with everything they need to begin SEF trading on October 2nd.”
Bloomberg has a large client base of more than 1,000 firms trading derivatives on its electronic platforms, Bloomberg sated that the following firms who intend to trade on its platform include: Barclays, BNP Paribas, BofA Merrill Lynch, Citigroup, Crédit Agricole CIB, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, Morgan Stanley, Nomura, RBS, Société Générale, UBS and Wells Fargo Securities.