Who can trade swaps on a SEF?
Section 5h(a)(1) of the Act provides that any person who offers a trading system or platform in which more than one market participant has the ability to execute or trade swaps with more than one other market participant on the system or platform must apply to the Commission to register as a SEF or be designated as a …
What is a SEF trading?
The Dodd-Frank Act defined a SEF as, “A facility, trading system or platform in which multiple participants have the ability to execute or trade swaps by accepting bids and offers made by other participants that are open to multiple participants in the facility or system, through any means of interstate commerce.”
Can OTC swaps be traded on SEF?
Financial swaps have traditionally been traded in over-the-counter (OTC) markets. The swaps that must be traded on SEFs are both subject to a CFTC-centralized clearing mandate and have been determined to be “made available to trade” (MAT) by at least one SEF.
Who regulates the swap market?
Under the Dodd-Frank Act, the SEC regulates “security-based swaps,” and the CFTC regulates “swaps.” There are rules defining which types of transactions are consi based swaps,” and which dered “swaps,” which are considered “security- fall outside the definition of either.
Are all swaps required to be transacted through a SEF?
Subject to certain limited exceptions, swaps that are subject to the trade execution requirement and traded on a SEF must be transacted as “Required Transactions” under Part 37 of the Commission’s regulations under Title 17 of the Code of Federal Regulations, while such swaps that are traded on a DCM must be transacted …
Is SEF a DCM?
NFA has provided regulatory services to designated contract markets (DCM) for more than 15 years. The Dodd-Frank Wall Street Reform Act created a new type of trading venue for standardized swaps—swap execution facilities (SEF)—each of which has self-regulatory responsibilities to monitor trading on its platform.
Who Must File CFTC Form 40?
Who Must File a Form 40 – Every person who holds or controls a reportable position must file a CFTC Form 40, Statement of Reporting Trader. (See section 18.04 of the regulations under the Commodity Exchange Act.) Persons include individuals, associations, partnerships, corporations, and trusts.
What is SEF (Swap Execution Facility)?
A Swap Execution Facility ( SEF) (sometimes Swaps Execution Facility) is a platform for financial swap trading that provides pre-trade information (i.e. bid and offer prices) and a mechanism for executing swap transactions among eligible participants.
Can I trade any swap listed on a SEF?
As of October 2, 2013, any swap listed by a SEF may be traded by the parties on the SEF, but may also be traded off-SEF in any other lawful manner. The swaps that must be traded on SEFs are both subject to a CFTC-centralized clearing mandate and have been determined to be “made available to trade” (MAT) by at least one SEF.
Are swaps regulated by the SEC?
Swap Execution Facilities are regulated by the Securities and Exchange Commission and the Commodity Futures Trading Commission. The regulated trading of certain swaps is a result of requirements in the United States by the Dodd–Frank Wall Street Reform and Consumer Protection Act (in particular Title VII ).
What is a SEF and how does it work?
The handling of trades is similar to other exchanges. Also, the Dodd-Frank Act states if no SEF system is available for specific swaps, then the previous, over-the-counter trading method, is acceptable. Proponents argue that a SEF is a swaps exchange, much like a stock or futures exchange, and they are correct, to a degree.