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CFTC implements further trade execution requirements whilst ESMA still grapples with initial stages 

November 11, 2014
Andrew Saks-McLeod, LeapRate

A year subsequent to setting in place the trade execution requirements for OTC derivatives trading within the institutional sector in the United States, the CFTC has now completed its ruling with regard to SEF usage for credit default and interest rate swaps whilst ESMA lags almost two years behind.

Just over one year after the Commodity Futures Trading Commission (CFTC) became the first non-bank financial services regulatory authority to produce its full set of rulings on the new and completely overhauled method of trade execution within the institutional electronic trading industry, the implementation of further requirements relating to swap execution facilities (SEF) has been completed.

In this particular case, the CFTC’s Division of Market Oversight (Division) announced yesterday that the trade execution requirement for certain interest rate and credit default swaps will now be set in place. The Division previously provided no-action relief for certain swaps required to be traded on a swap execution facility (SEF) or designated contract market (DCM) to the extent that those swaps were part of a package transaction. 

Read more: LeapRate

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