The Commodity Futures Trading Commission (``Commission'') is adopting regulations that establish a process for a designated contract market (``DCM'') or swap execution facility (``SEF'') to make a swap subject to the trade execution requirement pursuant to the Commodity Exchange Act (``CEA''). What’s a SEF: A SEF is an electronic trading platform designed to facilitate automated swap execution amongst large derivative counterparties for standardized swap contracts, intended to increase market transparency and efficiency. The first set of SEF trading mandates take effect on February 17, 2014. For swaps executed on or pursuant to the rules of a swap execution facility (“SEF”) or designated contract market (“DCM”), the SEF or DCM is responsible for reporting “swap transaction and pricing information” and “swap creation data” to the SDR (as described in the sidebar). The Commission also proposed regulations for designated contract market or swap execution facility to notify the Commission that it has made a swap available to trade for purposes of § 2(h)(8) of the Commodity Exchange Act. swaps executed on or pursuant to the rules of a registered SEF or a designated contract market (DCM), and those swaps executed bilaterally between counterparties and not pursuant to the rules of a SEF or DCM (off-facility swaps). Execution Facility (“SEF”) • SEFs are a new definition of trading facility that is not a designated contract market (“DCM”) Cleared swaps that are “sufficiently liquid” will be required to trade on Regulated Markets, Multilateral Trading Facilities (“MTF”) or Organised Trading Facilities (“OTF”) For real-time reporting, SDs and MSPs can report to the SDRs in a variety of ways: they can report directly to the SDR, via a DCM (Designated Contract Market/Exchange) or a SEF (Swap Execution Facility). There is a hierarchy to the real-time reporting, specifically: When executed on a SEF or a DCM, the SEF or DCM must report.
For real-time reporting, SDs and MSPs can report to the SDRs in a variety of ways: they can report directly to the SDR, via a DCM (Designated Contract Market/Exchange) or a SEF (Swap Execution Facility). There is a hierarchy to the real-time reporting, specifically: When executed on a SEF or a DCM, the SEF or DCM must report.
4 Jun 2013 Process for a Designated Contract Market or Swap Execution Facility To. Make a Swap 17 CFR 40.6(c)(1). 11 See 17 CFR 40.5(a)(5), 40.6(a)(7)(v). trade execution does not apply ''if no [DCM or SEF] makes the swap Designated Contract Market Filings DCMs may implement new rules or rule amendments by filing with the CFTC a certification that the rule or rule amendment complies with the CEA and CFTC regulations and policies and/or by requesting approval from the CFTC, pursuant to the requirements under Part 40 of the CFTC's regulations. Designated Contract Market (DCM) Traditional derivatives exchanges registered with and regulated by the Commodity Futures Trading Commission (CFTC) on which standardized derivatives contracts are executed. DCMs offer CFTC-regulated exchange-traded derivatives products, such as futures and options. • The process for a designated contract market (DCM) or SEF to make a swap available to trade under Section 2(h)(8) of the Commodity Exchange Act (CEA); 2. and • Procedures to establish the appropriate minimum block size for large notional off-facility swaps and block trades. 3 Designated contract markets (DCMs) are boards of trade (or exchanges) that operate under the regulatory oversight of the Commodity Futures Trading Commission (CFTC). The Commodity Futures Modernization Act (CFMA) establishes certain common requirements for all markets, whether principally securities or futures exchanges, SEF or designated contract market (“DCM”). 1. The CFTC also separately voted unanimously to request comment on the practice of post-trade name give-up for anonymous executions on SEFs (the “ Name Give-Up Comment Request ”). 2. The SEF Proposal is the most significant achievement to-date in a journey commenced by Chairman J. Christopher
Designated contract markets (DCMs) are boards of trade (or exchanges) that operate under the regulatory oversight of the Commodity Futures Trading Commission (CFTC). The Commodity Futures Modernization Act (CFMA) establishes certain common requirements for all markets, whether principally securities or futures exchanges,
for Designated Contract Markets (DCMs) and Swap Execution Facilities (SEFs) or a SEF, except where no DCM or SEF makes the swap “available to trade” or GlossaryDesignated Contract Market (DCM)Related ContentTraditional swap execution facility (SEF) (see Legal Update, MAT Summary: CFTC Swap The CFTC's SEF rules allowed these entities to contract with NFA for regulatory services. NFA entered into Regulatory Service Agreements (RSA) to perform 16 Sep 2019 Contract market, or designated contract market, is a registered The other type of exchange is called a swap execution facility (SEF). 3 Jun 2019 A Swap Execution Facility (SEF) is an electronic platform provided by a By far, the largest platform provider by market share is Tullett Prebon, but This liquidity enables traders to close positions ahead of contract maturity. Contract market, or designated contract market, is a registered OANDA vs. FINAL RULE: Designated Contract Market Core Principles approved at CFTC If a DCM operates as an SEF, it must register separately as an SEF, and, if the and documentation requirements for swaps versus futures would be present 20 Dec 2018 In an attempt to increase trading activity on SEFs, the SEF Proposal moves away from the on a designated contract market (“DCM”) or SEF (a “Required Transaction”), V. New Requirements for SEF Trading Specialists.
The CFTC's SEF rules allowed these entities to contract with NFA for regulatory services. NFA entered into Regulatory Service Agreements (RSA) to perform
9 Mar 2020 on a designated contract market (DCM) or a SEF's order book or that have been rejected for clearing versus those already accepted for. 23 Jan 2018 a registered SEF, designated contract market (DCM) or an entity exempt from such registrations3 by executing swaps on Exempt EU Venues. 6 Dec 2017 markets and swap execution facilities in the United States of America in implementing regulations ensure that designated contract markets DCM or SEF that the contract complies with the CEA and CFTC (v) trueEX LLC. 27 Jul 2017 to execute or trade swaps on the system or platform apply to the CFTC to register as a SEF or be classified as a designated contract market. 21 Feb 2011 A SEF is defined as a “trading system or platform in which multiple on a designated contract market (“DCM”)[3] or on a registered SEF, unless (iv) systems operations; (v) systems development and quality assurance; and
For swaps executed on or pursuant to the rules of a swap execution facility (“SEF”) or designated contract market (“DCM”), the SEF or DCM is responsible for reporting “swap transaction and pricing information” and “swap creation data” to the SDR (as described in the sidebar).
The CFTC's SEF rules allowed these entities to contract with NFA for regulatory services. NFA entered into Regulatory Service Agreements (RSA) to perform 16 Sep 2019 Contract market, or designated contract market, is a registered The other type of exchange is called a swap execution facility (SEF). 3 Jun 2019 A Swap Execution Facility (SEF) is an electronic platform provided by a By far, the largest platform provider by market share is Tullett Prebon, but This liquidity enables traders to close positions ahead of contract maturity. Contract market, or designated contract market, is a registered OANDA vs. FINAL RULE: Designated Contract Market Core Principles approved at CFTC If a DCM operates as an SEF, it must register separately as an SEF, and, if the and documentation requirements for swaps versus futures would be present