NFA Signs Agreement with TeraExchange to Provide Regulatory Services to its Swap Execution Facility
- The NFA and TeraExchange have announced that they have signed an agreement where the NFA will provide regulatory services for TeraExchange’s SEF. The agreement finalizes TeraExchange’s evolvement from an EBOT to a SEF.
The NFA and TeraExchange have announced that they have signed an agreement where the NFA will provide regulatory services for TeraExchange’s 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 facility (SEF). The agreement finalizes TeraExchange’s evolvement from an Exempt Board of Trade (EBOT) to a SEF. Founded in 2011, New Jersey based TeraExchange provides an anonymous central limit book for Interest Rate, FX, Energy, Agriculture, and Equity Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps and derivatives. In FX, the exchange provides coverage for USD/CNH, USD/BRL, USD/COL, USD/RUB, USD/KRW, USD/PEH, USD/MYR, USD/TWD, USD/PHP, and USD/IDR forwards.
Under new Dodd-Frank rules, the CTFC has provided framework for SEFs to act as self-regulating organizations (SRO), based on the development of industry standards. The self-regulating obligations include the implementation of trading and pricing surveillance systems and testing standards. In addition, the Dodd-Frank Act provided rules to allow SEFs to contract with a registered futures association, such as the NFA, for regulatory services.
CEO of TeraExchange, Christian Martin, commented on the news “we are pleased to be working with the outstanding team at NFA to build a platform for market participants with best-in-class governance and compliance controls. It is core to our mission to deliver the best swap trading venue for the long-haul. With our NFA partnership in place, we know market participants will feel secure trading swaps on Tera again and again."
NFA President Daniel J. Roth added "this is a significant step forward as we engage in new regulatory activity on behalf of SEFs. For over 10 years, NFA has been successfully performing trade practice and market surveillance functions on behalf of futures exchanges. We look forward to working with TeraExchange as we enhance our surveillance systems to assist SEFs in meeting their regulatory responsibilities."
The NFA and TeraExchange have announced that they have signed an agreement where the NFA will provide regulatory services for TeraExchange’s 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 facility (SEF). The agreement finalizes TeraExchange’s evolvement from an Exempt Board of Trade (EBOT) to a SEF. Founded in 2011, New Jersey based TeraExchange provides an anonymous central limit book for Interest Rate, FX, Energy, Agriculture, and Equity Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps and derivatives. In FX, the exchange provides coverage for USD/CNH, USD/BRL, USD/COL, USD/RUB, USD/KRW, USD/PEH, USD/MYR, USD/TWD, USD/PHP, and USD/IDR forwards.
Under new Dodd-Frank rules, the CTFC has provided framework for SEFs to act as self-regulating organizations (SRO), based on the development of industry standards. The self-regulating obligations include the implementation of trading and pricing surveillance systems and testing standards. In addition, the Dodd-Frank Act provided rules to allow SEFs to contract with a registered futures association, such as the NFA, for regulatory services.
CEO of TeraExchange, Christian Martin, commented on the news “we are pleased to be working with the outstanding team at NFA to build a platform for market participants with best-in-class governance and compliance controls. It is core to our mission to deliver the best swap trading venue for the long-haul. With our NFA partnership in place, we know market participants will feel secure trading swaps on Tera again and again."
NFA President Daniel J. Roth added "this is a significant step forward as we engage in new regulatory activity on behalf of SEFs. For over 10 years, NFA has been successfully performing trade practice and market surveillance functions on behalf of futures exchanges. We look forward to working with TeraExchange as we enhance our surveillance systems to assist SEFs in meeting their regulatory responsibilities."