CFTC Proposed Rule: Core Principles and Other Requirements for Swap Execution Facilities

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking on core principles for swap execution facilities. For a summary of the final rule, click here.
Dodd-Frank Timeline, Core Principles for SEFs, CFTC
Final Rule Issue Effective Date Compliance Date
June 4, 2013 August 5, 2013 October 2, 2013 (one-year phase-in of RFQ minimum); Also see No-action relief note

At its December 10, 2010 open meeting, the CFTC approved a proposed rulemaking that outlined the core principals and other requirements for swap execution facilities (SEFs). The proposed rule appeared in the Federal Register on January 7, 2011, and the period for public comment was open until March 8, 2011. The commission requested comment on these topics:

  • Notification of changes of ownership in SEFs, Derivative Contract Markets (DCMs) and Swap Data Repositories (SDRs)
  • Transparency, "multiple participant" access, quoting requirements, and trading level thresholds for limiting swaps to order books
  • Definition of provision to make a swap "available for trading"
  • Access to trading platforms, and compliance, surveillance, audit trail, risk controls, and other monitoring requirements between SEFs and various market participants
  • Special provisions for monitoring of high-frequency trading
  • Financial resource requirements for SEFs and DCOs
  • System safeguards and business structure of SEFs and DCOs, and the functions of the entities' officers (including the Chief Compliance Officer)

To view a selection of comments, click HERE.

Among the SEF core principles is a provision regarding the definition of "made available to trade (MATT)." Subsequent to the proposal, market participants have requested a clarification of the requirements of SEFs and DCMs. On December 5, 2011 open meeting, the commission proposed a rule on MATT. Details of this proposal can be found HERE.

Related Documents: Fact Sheet, Q&A, and Rule Proposal as it Appeared in the Federal Register[edit]


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