TeraExchange becomes the fifth trading venue to file its application to become a Swap Execution Facility (SEF) with the Commodity Futures Trading Commission (CFTC). The firm submitted its application to the regulator on Friday July 26th, 2013.
TeraExchange, an executing venue that offers anonymous central-limit order book for OTC derivatives instruments has submitted its application in anticipation of the new rules governing OTC products. The exchange offers traders a diverse range of instruments including; Interest Rate Swaps, CDS Indices, CDS Options and Single Name, NDFs and other cleared OTC products.
Under the new Dodd Frank rulings over the counter products are obliged to be traded on-exchange, in an attempt to remove counterparty risk and improve transparency. In addition, trading on an organised market place, the instruments will be centrally cleared and participants will adhere to record keeping procedures.
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TeraExchange CEO, Christian Martin commented about the move, he said in a statement: “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 a robust solution that has been tailored to meet the new regulatory requirements as well as the myriad needs of traders. We are very pleased to be included among the first to file for designation as a Swap Execution Facility with the CFTC and we welcome their oversight in this dynamically changing landscape.”
TeraExchange offers a wide range of FX instruments including: Cleared Foreign Exchange Derivatives (CME), Non-Deliverable Forwards (NDFs): USD/Chinese Renminbi, USD/Brazilian Real, USD/Chilean Peso, USD/Russian Ruble, USD/Columbian Peso, USD/Peruvian Sol, USD/Korean Won, USD/Indian Rupee, USD/Malaysian Ringgit, USD/Indonesian Rupiah, USD/Taiwan Dollar and USD/Philippines Peso. In addition to cash settled forward (CSF) foreign exchange pairs.
Other firms are expected to apply for SEF status include FXall, FXCM and Gain Capital.