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Known Unknowns: preparing for SEF-traded FX options 

February 11, 2014
Banking Tech

“With respect to transactions involving swaps subject to the clearing requirement … counterparties shall … execute the transaction on a board of trade designated as a contract market … or execute the transaction on a swap execution facility.”

With these words, the Dodd-Frank Act launched a new acronym into the alphabet soup of modern capital markets. In the years since, Swap Execution Facilities have been the subject of repeated discussions, consultations, submissions and interpretations, writes Robert Gray. Deadlines have been pushed back, and pushed back again. FX traders watched in relief from the side-lines before it was confirmed that FX options and NDFs were to be classed as swaps by the CFTC and subject to the new demands for exchange trading.

And now, after three years of furious wrangling, SEFs are finally here.

Read more: Banking Tech

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