This is the first announced equity swap focused SEF I’ve come across. The people at the help of this company come from Goldman Sachs electronic trading and have an interesting approach that is worth keeping an eye on. I’m sure there will be many more SEF announcements to come in the the next few months, but there’s a lot of opportunity to go around.
Kevin McPartland, a senior analyst at TABB Group who has been following the development of SEFs closely, said this team has found a niche not yet cornered by any other potential competitor. He did note, however, that their focus on the sellside may change as the market landscape changes with coming regulation. “What constitutes a dealer in the new world?” he asked. “That really changes the game.”