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.
UPDATED SUMMARY
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 | ✔ | ✔ | ✔ | ||||||
YOU ASKED FOR IT
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).
TRUNDLING THROUGH PAGES OF DOCUMENTS
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!
WHATS NEXT
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!