Dealers fear Sef rules will hurt OTC market liquidity

cftc-hq
The Commodity Futures Trading Commission headquarters

Dealers are becoming increasingly nervous that swap execution facilities (Sefs) - the trading platforms which serve as gateways to derivatives clearing in the Dodd-Frank Act - will undermine their client relationships, thanks to a Commodity Futures Trading Commission (CFTC) proposal that all quote requests go to at least five counterparties.

Because clearing-eligible trades will need to find their way to a central counterparty via either an exchange or a Sef, the CFTC proposal implies dealers

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here