Tradition Becomes Latest Firm to File SEF Application with CFTC

Putting its name in the growing list of potential operators of Swap Execution Facilities (SEF), interdealer, Compagnie Financière Tradition, has announced that they have completed their SEF application with the CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term. The trading activities will be offered through a new New York based subsidiary called Tradition SEF. Heading the unit is Mike Leibowitz, Tradition COO of EMEA and US, who will also act as the SEF’s CEO.

Meeting demands of coming Dodd-Frank rules, Tradition SEF will offer cleared and uncleared trading in multiple asset classes including equity derivatives, interest rate 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 Read this Term, credit default swaps, FX options and commodities. The platform will be via graphical user interfaces (GUI), application programming interfaces (API) direct, or via independent software vendors (ISVs), and will enable both electronic and voice driven executions.

Commenting on the application, Leibowitz stated “the submission of our Tradition's SEF application is a continuation of our long-standing commitment to operate global compliant and transparent trading solutions. Tradition's strategy is to proactively develop global regulatory compliant trading solutions with our customers, and partner with them where appropriate. Tradition SEF will enable our clients to continue trading and executing swaps transactions, accessed via Tradition's hybrid, electronic and voice services, while also meeting regulatory requirements".