SEF Swap Execution Facilities or SEFbitrage

Single Dealer platform a financial forum asked a very logical question to CFTC Has CFTC given too much power to SEFs ?images

Last week the CFTC passed the key rules that will govern how OTC derivatives will trade under the new Dodd-Frank regulatory framework.
By so doing, the CFTC has in effect devolved/transferred many important decisions regarding ‘where, and when’ swaps will trade over to the new market infrastructure and trading venues themselves, but will this give too much power to new trading venues?
One of the major rules that was passed, govern when a swap is ‘made available to trade’, or (MAT). This rule will determine which swaps are required to trade on Swap Execution Facilities (SEFs) or Designated Contract Markets (DCM).  Continue reading “SEF Swap Execution Facilities or SEFbitrage”

SWAPS TYPES – (Back to school)

English: Currencies exchange logo Français : L...

Continue from my last post Swaps try to understand the types of swaps :

  1. Swap in transaction: In such transaction the base currency is bought for near delivery & sold for forward delivery
  2. Swap out transactions : In such transaction the base currency is sold for near delivery & bought for forward delivery.
  3. Forward Swaps: In such transactions both the purchase and Sell transactions Continue reading “SWAPS TYPES – (Back to school)”