State Street, GFI, and MarketAxess join Tradeweb and Bloomberg as the first SEFs granted.
The CFTC has announced the granting of three more SEF licenses to State Street (via subsidiary SwapEx LLC), GFI, and MarketAxess. The three new licensees join Tradeweb Global (which actually received two separate licenses), and Bloomberg, as the only firms to successfully receive the designation so far.
Other SEF applications in process include those of Integral, ICAP, Tradition, Thomson Reuters and BGC Partners.
SEFs are the new trading venues mandated under the Dodd-Frank financial reform act. Trading derivatives on transparent platforms, with counterparty risk dealt with via a clearing house, was a key aim of regulators in the wake of the financial crisis. The creation of SEFs is seen as part of reforming the over-the-counter derivatives market, without forcing activity onto exchanges.
For the CFTC press release on the SEF license approvals click here.