One of the morning roundtable breakout sessions at MFA’s Compliance 2014 focused on the regulatory background and compliance challenges for trading on swap execution facilities (SEFs). SEFs are CFTC-registered electronic trading platforms for executing swaps that are “made available to trade” (MAT). Discussion leaders shared their insights and trading experiences by discussing what has happened in the SEF trading landscape since mid-February, when certain interest rate swaps and index CDS became MAT and thus subject to the CFTC’s trade execution requirement. They also discussed their views on how the competitive SEF landscape is evolving.
The SEF discussion generated numerous questions from roundtable session attendees on topics such as SEF rulebooks and various SEF participation models – direct access as a SEF “Participant” versus sponsored access functionality and agency execution models.
Stephen Berger, Director, Government and Regulatory Policy, Citadel LLC; Andres Choussy, Executive Director, Head of Derivatives Clearing Americas, J.P. Morgan; and Nathan Jenner, Chief Operating Officer, Bloomberg Electronic Trading, Bloomberg L.P. led the discussion.
Continue to stay tuned to MFA’s blog this afternoon for more updates from MFA’s Compliance 2014.