Tag: OTC Derivatives

SEF or OTF: A comparison of swaps trading reform in the US and Europe

Also published at TabbFORUM.com Is the sport called soccer or football? Should swaps be traded on Swap Execution Facilities (SEF) or Organized Trading Facilities (OTF)? For that matter, should organized be spelled with a ‘z’ or an ‘s’? While some of these debates are as old as the U.S. Declaration of Independence and others brand […]

CFTC trade rules will create 'winner's curse' (Risk.net)

Dissent for the block trade rule is still rampant.  As the thinking goes, if large swap trades, those that occur in illiquid products that occur weekly or less, are reported within 15 minutes as CFTC proposed rule suggests than the resulting information leakage would cause liquidity (and potentially the market) to dry up completely.  There […]

Talking to the Swap Execution Facilities

I’ve spent the better part of the last year studying what will become the swap execution facility (SEF) market, how it will be regulated, its players, its impact on derivatives trading.  More recently I’ve had the pleasure of speaking with a number of the industry’s leaders in the space regarding the plans for their organizations […]

Barclays Capital Rolls Out Electronic Credit Default Swaps Trading (Wall Street Journal)

Execution and clearing mandates for OTC derivative trades are still nearly a year a way by my estimates, but the Street is already getting ready.  While Deutsche Bank and Bluemountain Capital executed CDS trades through Tradeweb and cleared via the CME and ICE, Barclays was busy rolling out its new electronic CDS trading product for […]

SEC to propose rules for swap trading platforms (Reuters)

The SEC is set to release its SEF rules tomorrow, Feb 2, 2011, and only a small few details are floating around. Since they will be overseeing the less liquid single name CDS market I’d suspect they’ll focus more on the RFQ model than order book trading. My comments in the article, saying essentially, we […]