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CFTC relief dampens ICAP cross-border headstart  

February 21, 2014
Mike Kentz, IFR

Swaps brokers are taking starkly different views on how their European platforms will be affected by the Dodd-Frank electronic trading mandate even as swap execution facilities go live this week.

ICAP, the biggest broker by volume in the interest rate swaps market, applied to the CFTC in January to register its London-based electronic platform as a SEF, believing it would give it a headstart in the European market. But those plans have been at least temporarily scuppered by CFTC guidance that last week clarified the reach of its SEF rules into foreign jurisdictions, significantly altering the landscape for electronic platforms executing on behalf of US clients across borders.

It was previously assumed that European platforms would have to cut off US clients when SEF rules went into place this week, but the CFTC has given foreign jurisdictions breathing room in implementing SEF-equivalent rules until March 24.

Read more: IFR

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