CFTC Grants TeraExchange Temporary SEF Registration

TeraExchange, a US based multi- asset execution venue has been granted Swap Execution Facility (SEF) registration. The Commodity Futures Trading Commission, announced that it had approved the venue and gave temporary registration as a SEF.

TeraExchange was one of the early firms that submitted their SEF application. According to CFTC filings, the firm submitted its application on the 29th of July. After an eight and a half week wait, the firm received its approval.

TeraExchange promotes its SEF on its corporate website, stating its many advantages:

• Central limit order book SEF
• Pre-trade checks
• Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term and direct orders

Christian Martin, CEO of TeraExchange, commented about the firms SEF, and said in a statement to the media, "We are committed to being a leading SEF by delivering the most transparent and innovative marketplace available. We are providing customers across the entire marketplace with a robust solution that has been tailored to meet the new regulatory requirements, as well as the myriad needs of traders."

TeraExchange was established in 2011 in Summit, USA. The firm is classified as an exempt board of trade (EBOT) thus, giving it exemption from certain regulations. The CFTC defines it as follows, according to its website: "Transactions by eligible contract participants in a certain narrow list of selected commodities may be conducted on an exempt board of trade (EBOT) and be exempt from most CFTC Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term."

SEFs were formed as trading venues under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, to provide greater pre-trade and post-trade transparency to the swaps market.

TeraExchange will be required, as will all future temporarily and fully registered SEFs, to demonstrate continued compliance with all applicable provisions of the Commodity Exchange Act and CFTC regulations, including part 37, and any future regulations, amendments, guidance and interpretations issued by the CFTC. As a next step, the CFTC will undertake a substantive review of TeraExchange’s application for full registration.