Seed SEF LLC, a trading platform and provider of strategies for various hedgers and new investors, has garnered registration status as a Swap Execution Facility (SEF) by the Commodity Futures Trading Commission (CFTC), trailblazing a path as one of the first of its kind to obtain the distinction, according to a SEED SEF statement.
Seed CX helps provide new means for agricultural market participants to more efficiently hedge risk as well as gaining exposure to unique, rapidly developing markets. For its part, Seed CX has operated in channels in the wake of recent regulatory shifts and dramatic market restructuring. The group is backed by a consortium of fintech focused Venture Capital firms and strategic partners, including a number of commodity traders and farming groups.
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The registration at the CFTC as a SEF is important for the group as it bolsters the legitimacy and scope of its operations to now continue under the mantle of US regulation. Seed SEF has also had the support of a number of organizations worldwide, including the National Hemp Association, the Hemp Industries Association, the Canadian Hemp Trade Alliance and the European Industrial Hemp Association, among others.
According to Seed SEF President, Brian Liston, in a recent statement on the achievement: “We are excited to be registered. Seed SEF is looking forward to continuing its work with agricultural producers, processors and manufacturers on risk management services for the emerging agricultural products that consumers around the world are embracing.”
“For the past year, we have been working closely with farmers and processors around the country to identify the risks that we can address with forwards and options. Because of recent changes in federal law and regulation, industrial hemp presents unique opportunities and risk management challenges in manufacturing, food and health applications that Seed SEF’s products will address,” added Chief Executive Officer (CEO) Edward Woodford, in an accompanying statement.