CME Joins List of Approved SEFs

The U.S. Commodity Futures Trading Commission (CFTC) reported that it has granted the Chicago Mercantile Exchange (CME) temporary registration 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). The Chicago-based futures and options exchange is the first entity to be granted SEF status post US-government shutdown.

The CME SEF will offer a range of instruments through its CME Direct offering, a front- end multi-asset Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term offering listed and OTC products.

The CFTC, a United States financial service watchdog, was given the responsibility to manage the newly formed Swap Execution Facility, an exchange-based trading venue for interest rate swaps and certain FX instruments. The CME becomes the second major exchange to be approved as an SEF.

SEFs were introduced after the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was set in stone by the US government.

ICAP recently appointed former CME interest rates veteran, Laurent Paulhac. Mr Paulhac joined the world's largest inter-dealer broker to manage ICAP’s SEF.

SEFs have come under fire from traders who feel the transparency factor is out of context, as SEFs offer little in the form of measuring trade execution to favour users. Unlike the securities market SEFs do not have best execution rules, therefore trading firms executing on SEFs have to make estimates on trading at the ‘best’ price.

Firms trading on SEFs were pleased to hear Ullink, a low latency provider of trading solutions to financial services firms has become a compliant FIX 5.0 provider.