SEF’s: A Brief History (One day to go)

 

WE’RE NEARLY THERE

The October 2nd SEF date is nearly upon us.  It appears the world of SEF’s are going live with only a couple CFTC reliefs being granted for trade reporting (no relief for IRS and CDS).  The pace at which new utilities were born and approved by the CFTC seems unprecedented.  So besides my usual update, I thought it would be good to step back and look at the progress of SEF’s over the past month.

I would ideally like to do a time-lapse video for the registration process, however I only have 4 datapoints to work with (my 4 blogs), dating back to the end of August.  So please find below a brief history of the past month and the quite impressive progress of applications and authorizations.

 28-Aug-2013

Bloomberg was the first ones in the door, approved by the end of July.  A total of 12 SEF’s had filed with the CFTC.

SWAP EXECUTION FACILITY SUMMARY as of 28-Aug-2013

						Products Expected					DCO Expected
#	Registered Name	AKA	First Reg	Approval	App Status	IRD	EQD	CRD	FXD	CMD	CME	ICE	LCH	DCM
1	Bloomberg SEF	BSEF	4-Jun-13	30-Jul-13	Temp	✔		✔	✔		✔	✔	✔
2	DW SEF	Tradeweb / Dealerweb	8-Jul-13		Pending	✔		CDX			✔	✔	✔
3	TW SEF	Tradeweb / Dealerweb	8-Jul-13		Pending	✔		CDX			✔	✔	✔
4	MarketAxess SEF	MarketAxess	12-Jul-13		Pending			✔			✔	✔
5	trueEX	trueEX	15-Jul-13		Pending	✔		CS Fut			✔		✔	✔
6	GFI Swaps Exchange	GFI	19-Jul-13		Pending	✔	✔	✔	✔	✔	✔	✔	✔	Pending
7	TeraExchange	TeraExchange	26-Jul-13		Pending	✔		CDX	✔		✔	✔	✔
8	SwapEx	State Street	30-Jul-13		Pending	✔			✔		✔
9	INFX SEF	Integral	31-Jul-13		Pending				✔		✔
10	Javelin SEF	Javelin	2-Aug-13		Pending	✔		✔			✔
11	ICE Swap Trade	ICE	2-Aug-13		Pending			✔				✔		✔
12	tpSEF	Tullet Prebon	23-Aug-13		Pending	✔	✔	✔	✔	✔	✔	✔	✔

 10-Sep-2013

The Tradeweb applications were approved over a full month after Bloomberg.  3 more SEF’s put in applications.

SWAP EXECUTION FACILITY SUMMARY as of 10-Sep-2013

						Products Expected					DCO Expected
#	Registered Name	AKA	First Reg	Approval	App Status	IRD	EQD	CRD	FXD	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		Pending			✔			✔	✔
5	trueEX	trueEX	15-Jul-13		Pending	✔		CS Fut			✔		✔	✔
6	GFI Swaps Exchange	GFI	19-Jul-13		Pending	✔	✔	✔	✔	✔	✔	✔	✔	Pending
7	TeraExchange	TeraExchange	26-Jul-13		Pending	✔		CDX	✔		✔	✔	✔
8	SwapEx	State Street	30-Jul-13		Pending	✔			✔		✔
9	INFX SEF	Integral	31-Jul-13		Pending				✔		✔
10	Javelin SEF	Javelin	2-Aug-13		Pending	✔		✔			✔
11	ICE Swap Trade	ICE	2-Aug-13		Pending			✔				✔		✔
12	tpSEF	Tullet Prebon	23-Aug-13		Pending	✔	✔	✔	✔	✔	✔	✔	✔
13	360 Trading Networks	360T	29-Aug-13		Pending				✔		✔
14	ICAP SEF (US)	ICAP	30-Aug-13		Pending	✔	✔	✔	✔	✔	✔	✔	✔
15	BGC Derivative Markets	BGC	4-Sep-13		Pending	✔	✔	CDX	✔	✔	✔	✔	✔

 20-Sep-2013

A total of 9 SEF’s were now approved, and yet another 3 SEF’s lodged their filings.

SWAP EXECUTION FACILITY SUMMARY as of 20-Sep-2013

						Products Expected					DCO Expected
#	Registered Name	AKA	First Reg	Approval	App Status	IRD	EQD	CRD	FXD	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		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		Pending				✔		✔
10	Javelin SEF	Javelin	2-Aug-13	19-Sep-13	Temp	✔		✔			✔
11	ICE Swap Trade	ICE	2-Aug-13		Pending			✔				✔		✔
12	tpSEF	Tullet Prebon	23-Aug-13		Pending	✔	✔	✔	✔	✔	✔	✔	✔
13	360 Trading Networks	360T	29-Aug-13		Pending				✔		✔
14	ICAP SEF (US)	ICAP	30-Aug-13		Pending	✔	✔	✔	✔	✔	✔	✔	✔
15	BGC Derivative Markets	BGC	4-Sep-13	19-Sep-13	Temp	✔	✔	CDX	✔	✔	✔	✔	✔
16	Tradition SEF	Tradition	9-Sep-13		Pending	✔	✔	✔	✔	✔	✔	✔	✔
17	Reuters SEF	Thomson Reuters / FXall	9-Sep-13		Pending				✔		✔
18	CME	CME Group	17-Sep-13		Pending					✔	✔			✔

 01-Oct-2013

With one day to go, 17 SEF’s have their applications temporarily authorized.  Only CME and a new entrant (LatAm SEF) remain unapproved.

SWAP EXECUTION FACILITY SUMMARY as of 01-Oct-2013

						Products Expected					DCO Expected
#	Registered Name	AKA	First Reg	Approval	App Status	IRD	EQD	CRD	FXD	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	20-Sep-13	Temp	✔		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	24-Sep-13	Temp				✔		✔
10	Javelin SEF	Javelin	2-Aug-13	19-Sep-13	Temp	✔		✔			✔
11	ICE Swap Trade	ICE	2-Aug-13	20-Sep-13	Temp			✔				✔		✔
12	tpSEF	Tullet Prebon	23-Aug-13	24-Sep-13	Temp	✔	✔	✔	✔	✔	✔	✔	✔
13	360 Trading Networks	360T	29-Aug-13	23-Sep-13	Temp				✔		✔
14	ICAP SEF (US)	ICAP	30-Aug-13	27-Sep-13	Temp	✔	✔	✔	✔	✔	✔	✔	✔
15	BGC Derivative Markets	BGC	4-Sep-13	19-Sep-13	Temp	✔	✔	CDX	✔	✔	✔	✔	✔
16	Tradition SEF	Tradition	9-Sep-13	25-Sep-13	Temp	✔	✔	✔	✔	✔	✔	✔	✔
17	Reuters SEF	Thomson Reuters / FXall	9-Sep-13	27-Sep-13	Temp				✔		✔
18	CME	CME Group	17-Sep-13		Pending					✔	✔			✔
19	LatAm SEF	LatAm SEF, LLC ??	25-Sep-13		Pending	??	??	??	??	??	??	??	??

READ THE PRESS

As I have mentioned before in my blog, the CFTC official filings website often lags the news reports and press releases on industry filings.  In case you are keeping score at home, it may be helpful to also monitor the CFTC press releases, as this is where I was able to confirm the news of ICAP and Reuters being registered.

WHO IS LATAM SEF?

Which brings me to the last entrant, LatAm SEF, LLC.  I saw their name mentioned (but not explained) in a couple news reports claiming that only 2 SEF’s are not yet approved.  Their name did not ring a bell so I head to the CFTC website, where there are no associated documents or press releases related to their filing.  I managed to find public records stating that they incorporated in Delaware on 11-Sep-2013.  However that is all I can find.  Google is unable to provide anything further.

I am keen to learn more about LatAm SEF.  I would be grateful if one of my readers would let me know in the comments section who this SEF is, what they are offering, which DCO’s they intend to use, and any other related information about them.  I want to offer a reward to the first person to yield information, ahead of any CFTC public documentation I can find available.

The first person to give such information will win a one month free subscription of the Clarus SDRView Professional service.

MISSED THE BOAT FIRST SAILING

I am not sure who is left to be added to the list.  I’ve read some press on FX Week about a couple FX Options platforms struggling with the particular circumstances surrounding FX, but I have to think there will be some more entrants in the weeks to come.

SO WHAT HAPPENS NEXT?

By many accounts, October 2 should turn out to be a snoozefest.  The MAT designations are not due to come about until late Q4 at the absolute earliest, and as Kevin McPartland points out in his excellent post here, doing so during the holiday season would seem a bit daft.  I think the SEF’s have enough to work out, both on the technical/integration aspects of their platforms as well as client onboarding, to think we’re going to see anything exciting happen any time soon.

MY PARTING THOUGHT

Come October 2nd, I wonder if there will be anyone out there who will both (a) trade a swap on a SEF and (b) buy some Obamacare online?