In the past I’ve spoken about buy side incentives for using an agency model – chief among them the reluctance or inability to navigate the slew of legal documents an institutional investor would need to sign in order to gain access to the needed SEFs. (Other incentives are discussed in a good post on the […]
Tag: SEF
Impartial Access: The CFTC Isn’t Messing Around This Time
The CFTC issued a slew of new guidance and rules last week, two of them particularly interesting and impactful. First was the rule that requires clearinghouses to have credit facilities available to back up all margin posted in US Treasuries. I (and pretty much every one else in the market) think this is ridiculous. If […]
Mandatory SEF Trading Does Not Equal Mandatory Electronic Trading
Forgive me if I’m stating the obvious for some of you, but I’ve had this conversation more than once and felt some clarity was in order here. As we work through the made available to trade (MAT) process, it’s important to reemphasize what actually will be required on mandatory SEF trading day 1. It all […]
The CFTC Killed SEF Trading (for now)
Last week was a busy week in SEF land. November 1 brought in to play a host of new rules, the MAT wars heat up and the Commission made the void rule even more confusing than it was before. So where has that left us? With a huge drop in SEF volumes and a bunch […]
Greenwich Fixed Income Market Structure Event: Liquidity, SEFs and Technology to Manage the Change
Given all of the research we have going on here at Greenwich and all of the regulatory mess going on in the world, we thought it a good time to set up a webinar to review both. I’ll go through some of my recent research here at Greenwich – credit liquidity alternatives, trading technology spend, […]
The Void Rule No-Action makes No-Sense
OK, so not all of it. On Friday at 5:55pm (which I guess is better than 11:59p on October 31) the CFTC issues somewhat expected no-action relief for parts of the SEF rules set to take effect on Friday November 1. It focuses on the so-called Void Rule (discussed in an earlier post), and states […]
The Results are In: What parts of the rate curve should be mandated for trading first?
Earlier this week the first two made available for trading applications were made to the CFTC starting the clock ticking for mandatory SEF trading. Those applications started a debate as to exactly how mandatory SEF trading should be phased in. Should day 1 trading mandates only include the most liquid points on the rate curve, […]
New Greenwich Report: As Credit Market Liquidity Suffers, Institutional Investors Seek Alternatives
This is my first official research piece since joining Greenwich Associates this past summer. It is available to Greenwich clients. If you’re not sure if you’re a client, or don’t have a login to the website, let me know. Enjoy. New Greenwich Associates Report Analyzes Role of CDS, ETFs and SEFs Tuesday, October 22, 2013 […]
MAT the MACs, or MAT Everything – Let’s Vote
trueEX yesterday filed their MAT application to start a CFTC review process alongside the one underway for Javelin’s application. This will add a huge amount of fuel to the debate on whether or not all points in the rate curve should be mandated for trading out of the gate (Javelin) or only the most standard […]
Roll Out the Welcome MAT
On Friday afternoon Javelin SEF filed the first made available-to-trade application with the CFTC (thanks Jamie for making us all scramble around on a Friday afternoon!). This is great news. The ball is rolling that will make SEF trading volumes finally matter. But of course, as with everything derivatives reform, things are not yet cut and dry. […]