[[Featured Commentary - Swaps Provisions - George Bollenbacher, January 30, 2012|George Bollenbacher Commentary on "Made Available to Trade" Roundtable, January 30, 2012]
In an effort to provide further information to the Commodity Futures Trading Commission as it moves toward adoption of a final Swap Execution Facility (SEF) rule, the Asset Management Group of the Securities Industry and Financial Market Association (SIFMA AMG) and the International Swaps and Derivatives Association (ISDA) developed a buy-side member survey regarding the impact of a requirement to go out to five or more liquidity providers for a request-for-quote (RFQ) platform to qualify as a SEF. Members of the Managed Funds Association (MFA) were also invited to participate in the survey. Here is a summary of the survey results.
On March 29, 2011, the International Swaps and Derivatives Association (ISDA) released a white paper outlining its vision for the structure and core principles of swap execution facilities (SEFs). The paper looks at SEFs in the context of the Dodd-Frank Act and CFTC proposed rules on SEFs. Among ISDA's recommendations:
- Core principles of SEFs should include maximum choice, transparency, access, and flexibility;
- Rules should reflect the specific functions and structure of SEFs, and not be "simply imported from other markets;"
- Current regulatory proposals, such as requirements that SEFs be responsible for determining swap clearing eligibility and soliciting a minimum number of bids for a swap prior to a transaction, are in need of improvement.
Link to Press Release
- ↑ ISDA: SEF Rules Should Provide Greater Choice, Access and Liquidity to OTC Derivatives Market Participants. International Swaps and Derivatives Association Inc.. Retrieved on March 29, 2011.