GFI Group, a provider of wholesale brokerage and electronic execution products has become the fourth firm to apply to become a multi-asset Swap Execution Facility (SEF) under the Commodity Futures Trading Commission’s (CFTC) that recently announced SEF rules issued under the Dodd-Frank Act.
The global financial crisis of 2008 changed the entire landscape of over the counter (OTC) products. According to Dodd Frank rulings OTC products are to be executed on an exchange, the move aims to remove counterparty risk and bring a high level of transparency to financial contracts.
The US financial watchdog, CFTC, finalised the rules and regulations for SEFs two months ago. The financial regulator opened up registration last month from the 1st of June. GFI joins leading firms including; Bloomberg, Tradeweb and MarketAxess in a list that is expected to grow. With uncertainty arising on the exact nature of a FX swap and FX spot transaction; firms such as FXCM, FXall and Gain Capital could also register as SEFs.
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“This is an important day in the history of our company and for the swaps markets,” said Colin Heffron, Chief Executive Officer of GFI Group in a statement to the media.
GFI Group, a well-established participant in multi-asset trading offers trading swaps in a range of financial instruments such as;, fixed income, equity and commodity asset classes. The firm allows counterparties to execute trades through a wide selection of electronic and other trading methods, including central limit order books, matching and Request for MatchSM, join-the-trade, request-for-quote (RFQ) and hybrid voice/electronic trade execution
“For more than 25 years, GFI has provided market participants around the world with safe, liquid and transparent venues for trading swaps and other financial and commodity products. GFI’s long standing commitment to technology investment and innovation enables us to be one of the first to file for designation with the CFTC as a ‘swap execution facility’. GFI looks forward to continuing to serve market participants in swaps and other products in the emerging regulatory landscape with deep and transparent liquidity, leading electronic trade execution, attentive customer service and unbiased market connectivity,” concludes Mr Heffron.