SEFs: Three More Join

The world of SEF’s continues to move forward.  10 days on from my last update, and I’m back to summarize the updates.  My forecast was correct, in that Tradition finally got their application in, and we saw another “traditional DCM” apply, CME.


The SEF Summary Table below demonstrates some headline statistics:

1)      The number of applications has increased from 15 to 18.
2)      The number of applications “approved” to Temporary status has increased from 3 to 9.
3)      While Bloomberg wins the award for first approval, BGC wins the award for quickest approval, at 15 days.
4)      Four of the SEFs registered also have, in some fashion, a designated or pending DCM (I have not given credit to BGC for the Cantor Movie Box Office Exchange!)

Products Expected DCO Expected
# Registered Name AKA First Reg CFTC Date App Status Rate Equity Credit FX CMD CME ICE LCH DCM
1 Bloomberg SEF BSEF 4-Jun-13 30-Jul-13 Temp
2 DW SEF Tradeweb / Dealerweb 8-Jul-13 6-Sep-13 Temp CDX
3 TW SEF Tradeweb / Dealerweb 8-Jul-13 6-Sep-13 Temp CDX
4 MarketAxess SEF MarketAxess 12-Jul-13 16-Sep-13 Temp
5 trueEX trueEX 15-Jul-13 15-Jul-13 Pending CS Fut
6 GFI Swaps Exchange GFI 19-Jul-13 13-Sep-13 Temp Pending
7 TeraExchange TeraExchange 26-Jul-13 19-Sep-13 Temp CDX
8 SwapEx State Street 30-Jul-13 13-Sep-13 Temp
9 INFX SEF Integral 31-Jul-13 31-Jul-13 Pending
10 Javelin SEF Javelin 2-Aug-13 19-Sep-13 Temp
11 ICE Swap Trade ICE 2-Aug-13 2-Aug-13 Pending
12 tpSEF Tullet Prebon 23-Aug-13 23-Aug-13 Pending
13 360 Trading Networks 360T 29-Aug-13 29-Aug-13 Pending
14 ICAP SEF (US) ICAP 30-Aug-13 30-Aug-13 Pending
15 BGC Derivative Markets BGC 4-Sep-13 19-Sep-13 Temp CDX
16 Tradition SEF Tradition 9-Sep-13 9-Sep-13 Pending
17 Reuters SEF Thomson Reuters / FXall 9-Sep-13 9-Sep-13 Pending
18 CME CME Group 17-Sep-13 17-Sep-13 Pending


I received some comments on the meaning of “Temporary”.  Temporary registration, while it sounds, er, “temporary”, is really as far as a SEF is going to get for a while; SEF’s will be able to operate under this banner.  For all intents and purposes, I believe this should be considered good to go.

I also received a comment/request from Jon Skinner on my last blog.  Jon wanted to see which DCO’s the SEF’s intend to utilize.  As with much of this research, it required me to trundle through pages of CFTC filings.  And as I have run into before, many times this information has been kept confidential under the FOIA (In particular, Exhibit T in each filing lists the intended DCO’s).  So in the table above, I have color-coded/greyed out the ones for which I was forced to make an educated guess.  I have summarized them into the major three headline names, even though the filings are more specific (For example LCH may refer to the US LLC, the UK Ltd, and the Paris SA).


While the FOIA means that much of the really useful information is not accessible to the public, I must give “props” to BGC for their filing.  If you have had the inclination to read (or scan) just one filed document, their schedule M is by far the most complete and informative rule book.  Its 92 pages, so again, only if you have ever wanted to read one!


So we have roughly 2 weeks now to the October 2 SEF date, so this space should continue to be interesting.  However I understand a couple CFTC commissioners have expressed some thoughts on providing the industry with more time.  I’ll quote commissioner Wetjen’s comment at a recent FIA meeting “We should see if we shouldn’t change course on these compliance dates”.  That sounds familiar!


Stay informed with our FREE newsletter, subscribe here.