The Wholesale Market Brokers’ Association of the Americas has released its core principles for swap execution facilities, which it has submitted to the CFTC and the Securities and Exchange Commission.
Under Title VII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, swap execution facilities are a new
form of regulated market for trading and processing swaps.
The draft establishes core principles that reflect the
statutory definition and requirements of SEFs. It also looks at
core principles which allow SEFs to only allow trading in swaps
which the CFTC has determined not to be readily susceptible to
The WMBAA said SEFs must monitor trading to prevent
manipulation, price distortion and disruptions in the
settlement process. They will publish information on settlement
prices, transaction price range and volume, and other
transaction data, in a timely way.