CFTC moves packaged swaps onto SEFs

摘要

Swaps traders pairing standard swaps with other securities such as swaptions and secondary market corporate bonds now have to trade the entire package through regulated swap execution facilities, as opposed to the bilateral execution that existed previously. The migration became mandatory under CFTC rules over the weekend, following the provision of relief to swap traders by the agency in order to provide more time to comply. Past instances of this type of migration have been riddled with operational issues -but in this case market participants say they are ready. "Operationally we are fully capable of taking a packaged order for a dealer or customer and executing it through our SEF -in past cases the market had to ask for more time, but in this case we are capable of handling the change," said Shawn Bernardo, CEO of Tullett Prebon's SEF.