Swap execution facility - Revision history

Doug: Add link.

2024-07-26T20:04:03Z

Add link.

← Older revision		Revision as of 20:04, 26 July 2024
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	An SEF may facilitate trade in any swap product.		An SEF may facilitate trade in any swap product.

	If the product has been the subject of a Commodity Futures Trading Commission ([[CFTC]]) determination that it must be cleared, then the SEF will file with the CFTC a "made available to trade" (MAT) determination. After CFTC approval of the MAT determination in such a case, bilateral execution of such swaps is no longer permitted: they must be executed on an SEF or a DCM. SEFs, then, offer such swaps as "Required Transactions" - its other swap offerings being "Permitted Transactions".		If the product has been the subject of a Commodity Futures Trading Commission (CFTC) determination that it must be cleared, then the SEF will file with the CFTC a "made available to trade" (MAT) determination. After CFTC approval of the MAT determination in such a case, bilateral execution of such swaps is no longer permitted: they must be executed on an SEF or a DCM. SEFs, then, offer such swaps as "Required Transactions" - its other swap offerings being "Permitted Transactions".


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	* [[Central Limit Order Book]]		* [[Central Limit Order Book]]
			* [[Commodity Futures Trading Commission]] (CFTC)
	* [[Facility]]		* [[Facility]]

imported>Doug Williamson: Add link.

2022-07-06T12:53:50Z

Add link.

← Older revision		Revision as of 12:53, 6 July 2022
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	* [[Central Limit Order Book]]		* [[Central Limit Order Book]]
			* [[Facility]]

imported>Doug Williamson: Classify page.

2022-07-02T12:10:02Z

Classify page.

← Older revision		Revision as of 12:10, 2 July 2022
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	===Other ~~links=~~==		==Other link==
	* [http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb110404.pdf Trading models and liquidity provision in OTC derivatives markets, Bank of England Quarterly Bulletin, Q4 2011,]		* [http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb110404.pdf Trading models and liquidity provision in OTC derivatives markets, Bank of England Quarterly Bulletin, Q4 2011,]

			[[Category:Financial_products_and_markets]]

imported>Doug Williamson: Layout.

2015-05-11T09:34:56Z

Layout.

← Older revision		Revision as of 09:34, 11 May 2015
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	==Other links==		===Other links===
	* [http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb110404.pdf Trading models and liquidity provision in OTC derivatives markets, Bank of England Quarterly Bulletin, Q4 2011,]		* [http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb110404.pdf Trading models and liquidity provision in OTC derivatives markets, Bank of England Quarterly Bulletin, Q4 2011,]

imported>Doug Williamson: Moved link to Bank of England publication to separate heading

2015-04-07T14:14:01Z

Moved link to Bank of England publication to separate heading

← Older revision		Revision as of 14:14, 7 April 2015
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	Note ~~that "block~~ trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - are not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.		'''Note:'''

			'Block trades' - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - are not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.


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	* [[Central Limit Order Book]]		* [[Central Limit Order Book]]
	* ~~Trading models and liquidity provision in OTC derivatives markets, Bank of England Quarterly Bulletin, Q4 2011, [~~[http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb110404.pdf]]

			==Other links==
			* [http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb110404.pdf Trading models and liquidity provision in OTC derivatives markets, Bank of England Quarterly Bulletin, Q4 2011,]

imported>Doug Williamson: Update to spread out for clarity, and other typographical changes.

2015-01-09T19:21:37Z

Update to spread out for clarity, and other typographical changes.

← Older revision		Revision as of 19:21, 9 January 2015
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	(''US'').		''US''.

			A swap execution facility (an SEF) is defined in the [[Dodd-Frank]] legislation 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”.

	A swap execution facility (an SEF) is defined in the [[Dodd-Frank]] legislation 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”.

	SEFs are one of two types of "exchange" on which [[mandatory cleared swaps]] may be traded. The other type comprises [[designated contract market]]s (DCMs).		SEFs are one of two types of "exchange" on which [[mandatory cleared swaps]] may be traded. The other type comprises [[designated contract market]]s (DCMs).

	SEFs provide post-trade transparency by real-time public reporting and pre-trade transparency by providing bids and offers to eligible contract participants (ECPs) - broadly financial institutions or individuals or legal entities with a minimum USD 10 m. of net worth. (Non ECPs can only deal with DCMs.)		SEFs provide post-trade transparency by real-time public reporting and pre-trade transparency by providing bids and offers to eligible contract participants (ECPs) - broadly financial institutions or individuals or legal entities with a minimum USD 10 m. of net worth. (Non ECPs can only deal with DCMs.)


	The intention of the legislation is to move what were bilateral derivative contracts on to the two types of exchange that enable participants to execute or to trade swaps with other market participants - so called "many to many" functionality.		The intention of the legislation is to move what were bilateral derivative contracts on to the two types of exchange that enable participants to execute or to trade swaps with other market participants - so called "many to many" functionality.

	This functionality is required to be offered for mandatory cleared swaps by each SEF through an order book or a request for quote (RFQ) system for mandatory cleared swaps. RFQ systems must eventually show the RFQ to at least three market participants. Provided order book trading is offered at a minimum, other swaps can use any trading system for execution.		This functionality is required to be offered for mandatory cleared swaps by each SEF through an order book or a request for quote (RFQ) system for mandatory cleared swaps. RFQ systems must eventually show the RFQ to at least three market participants. Provided order book trading is offered at a minimum, other swaps can use any trading system for execution.


	An SEF may facilitate trade in any swap product.		An SEF may facilitate trade in any swap product.
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	If the product has been the subject of a Commodity Futures Trading Commission ([[CFTC]]) determination that it must be cleared, then the SEF will file with the CFTC a "made available to trade" (MAT) determination. After CFTC approval of the MAT determination in such a case, bilateral execution of such swaps is no longer permitted: they must be executed on an SEF or a DCM. SEFs, then, offer such swaps as "Required Transactions" - its other swap offerings being "Permitted Transactions".		If the product has been the subject of a Commodity Futures Trading Commission ([[CFTC]]) determination that it must be cleared, then the SEF will file with the CFTC a "made available to trade" (MAT) determination. After CFTC approval of the MAT determination in such a case, bilateral execution of such swaps is no longer permitted: they must be executed on an SEF or a DCM. SEFs, then, offer such swaps as "Required Transactions" - its other swap offerings being "Permitted Transactions".

	Note that "block trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.
			Note that "block trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - are not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.

imported>Doug Williamson: Added acronym for Made available to trade

2015-01-09T09:29:27Z

Added acronym for Made available to trade

← Older revision		Revision as of 09:29, 9 January 2015
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	An SEF may facilitate trade in any swap product.		An SEF may facilitate trade in any swap product.

	If the product has been the subject of a Commodity Futures Trading Commission ([[CFTC]]) determination that it must be cleared, then the SEF will file with the CFTC a "made available to trade" determination. After CFTC approval of the MAT determination in such a case, bilateral execution of such swaps is no longer permitted: they must be executed on an SEF or a DCM. SEFs, then, offer such swaps as "Required Transactions" - its other swap offerings being "Permitted Transactions".		If the product has been the subject of a Commodity Futures Trading Commission ([[CFTC]]) determination that it must be cleared, then the SEF will file with the CFTC a "made available to trade" (MAT) determination. After CFTC approval of the MAT determination in such a case, bilateral execution of such swaps is no longer permitted: they must be executed on an SEF or a DCM. SEFs, then, offer such swaps as "Required Transactions" - its other swap offerings being "Permitted Transactions".

	Note that "block trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.		Note that "block trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.

imported>Doug Williamson: Amended to conform to branding style: US in italics, added full name of CFTC before acronym, added space before see also

2015-01-09T09:26:53Z

Amended to conform to branding style: US in italics, added full name of CFTC before acronym, added space before see also

← Older revision		Revision as of 09:26, 9 January 2015
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	US		(''US'').

	A swap execution facility (an SEF) is defined in the [[Dodd-Frank]] legislation 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”.		A swap execution facility (an SEF) is defined in the [[Dodd-Frank]] legislation 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”.
Line 13:		Line 13:
	An SEF may facilitate trade in any swap product.		An SEF may facilitate trade in any swap product.

	If the product has been the subject of a [[CFTC]] determination that it must be cleared, then the SEF will file with the CFTC a "made available to trade" determination. After CFTC approval of the MAT determination in such a case, bilateral execution of such swaps is no longer permitted: they must be executed on an SEF or a DCM. SEFs, then, offer such swaps as "Required Transactions" - its other swap offerings being "Permitted Transactions".		If the product has been the subject of a Commodity Futures Trading Commission ([[CFTC]]) determination that it must be cleared, then the SEF will file with the CFTC a "made available to trade" determination. After CFTC approval of the MAT determination in such a case, bilateral execution of such swaps is no longer permitted: they must be executed on an SEF or a DCM. SEFs, then, offer such swaps as "Required Transactions" - its other swap offerings being "Permitted Transactions".

	Note that "block trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.		Note that "block trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.


	==See also==		==See also==

imported>John Grout: To add 2 see also entries

2014-11-03T23:49:04Z

To add 2 see also entries

← Older revision		Revision as of 23:49, 3 November 2014
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	Note that "block trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.		Note that "block trades" - those large enough to cause market disruption, the size being defined variously for each swap type by the CFTC - not required to be traded as Required Transactions on SEFs and have delayed real-time public reporting.

			==See also==

			* [[Central Limit Order Book]]
			* Trading models and liquidity provision in OTC derivatives markets, Bank of England Quarterly Bulletin, Q4 2011, [[http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb110404.pdf]]

imported>Doug Williamson: Make page link to 'designated contract market' singular to mend the broken link.

2014-09-09T18:01:24Z

Make page link to 'designated contract market' singular to mend the broken link.

← Older revision		Revision as of 18:01, 9 September 2014
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	A swap execution facility (an SEF) is defined in the [[Dodd-Frank]] legislation 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”.		A swap execution facility (an SEF) is defined in the [[Dodd-Frank]] legislation 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”.

	SEFs are one of two types of "exchange" on which [[mandatory cleared swaps]] may be traded. The other type comprises [[designated contract ~~markets~~]] (DCMs).		SEFs are one of two types of "exchange" on which [[mandatory cleared swaps]] may be traded. The other type comprises [[designated contract market]]s (DCMs).

	SEFs provide post-trade transparency by real-time public reporting and pre-trade transparency by providing bids and offers to eligible contract participants (ECPs) - broadly financial institutions or individuals or legal entities with a minimum USD 10 m. of net worth. (Non ECPs can only deal with DCMs.)		SEFs provide post-trade transparency by real-time public reporting and pre-trade transparency by providing bids and offers to eligible contract participants (ECPs) - broadly financial institutions or individuals or legal entities with a minimum USD 10 m. of net worth. (Non ECPs can only deal with DCMs.)