CFTC Approves Clear ‎Markets as Fully Registered Swap ‎Execution Facility ‎

CFTC on Monday formally recognised a new venue as a SEF, reflecting the ‎industry’s growing adaptation to the new rules.

The U.S. Commodity Futures Trading Commission (CFTC) ‎today announced that the Delaware-based Clear Markets North America, Inc. (Clear ‎Markets), has been approved to operate as a fully registered Swap Execution Facility ‎‎(SEF), according to an official CFTC statement.‎

Clear Markets, a wholly-owned subsidiary of Clear Markets Holdings, Inc., ‎previously obtained temporary registration status on May 2014. As a next step, the commission undertook a substantive review of company’s application for full ‎registration. ‎

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The US watchdog has issued recently a series of orders granting registration to a large number of platforms to operate as Swap ‎Execution Facilities, better known as SEFs. However, much of ‎the trading volume in this realm is still concentrated among a few big players. The list includes ICAP, ‎BGC Partners, Tullett Prebon, CME Group, ICE and Bloomberg, with the latter capturing ‎nearly 50 per cent of plain vanilla swap trades last year.‎

According to the CFTC statement, Clear Markets has demonstrated compliance ‎with the Commodity Exchange Act (CEA) and the commission’s regulations ‎applicable to SEFs, which are required to comply with the core principles in ‎Section 5h of the CEA. Following the ‎new registration order, Clear Markets also shall comply with all representations and ‎submissions made by it in support of its application for registration as a Swap Execution Facility.‎

SEFs are trading entities that clear OTC products, such as OTC interest rate and credit ‎swaps under the CFTC’s regulatory oversight. The new facility emerged out from ‎the Dodd- Frank Act and Consumer Protection Act of 2010 which deemed NDFs as a ‎financial instrument requiring mandatory clearing, providing greater pre-trade and ‎post-trade transparency to the swaps market.‎


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