The US Commodity Futures Trading Commission (CFTC) has issued a series of orders granting registration to a total of eighteen swap execution facilities (SEFs), granting them more long-term registration status, according to a CFTC statement.
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By definition, SEFs are trading facilities that operate under the mantle of the CFTC’s regulatory oversight for purposes of trading and processing swaps. SEFs previously received authorization to be created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to help provide better pre- and post-trade transparency and accountability to the swaps market. The SEFs approved for registration are all household names in the financial services industry, and include the following entities:
- 360 Trading Networks Inc.
- BGC Derivatives Markets, L.P.
- Bloomberg SEF LLC
- Chicago Mercantile Exchange Inc.
- DW SEF LLC
- GFI Swaps Exchange LLC
- ICAP Global Derivatives Limited
- ICAP SEF (US) LLC
- ICE Swap Trade, LLC
- Javelin SEF, LLC
- LatAm SEF, LLC
- MarketAxess SEF Corporation
- SwapEx, LLC
- Thomson Reuters (SEF) LLC
- tpSEF Inc.
- Tradition SEF, Inc.
- trueEX LLC.
- TW SEF LLC.
Prior to the CFTC order, the aforementioned SEFs were operating under temporary registration status, and have now garnered a more concrete regulatory stature. Following the new registration order, the SEFs will still be required to demonstrate renewed compliance under the applicable provisions of the Commodity Exchange Act (CEA) and CFTC regulations, which includes Part 37, as well as any future regulations, amendments, guidance, and interpretations as dictated by the CFTC.
In addition, the CFTC still will provide temporary registration for five remaining SEFs that have not yet achieved a change in registration status. Subsequently, CFTC staff is continuing with registration reviews for these SEFs – pending a review, these facilities will continue to operate under temporary registration status in the interim.