Keyser Sose, the pen name of an anonymous Sef operator, sets out the absurdities and uncertainties in the new world of Swap Execution Facilities.
The Swap Execution Facility landscape that commenced on
October 2 is shrouded in mystery and suspense.
Uncertainty as to what in reality has been foisted upon the
industry has been extended by partial relief via no action
letters and the closure of the CFTC since the day before
â€œSef Dayâ€ and for over two
So what is a Sef? I think that question will only be
answered two years from now, at which point Europe may even
have another acronym, the OTF.
At this stage we can be certain that a Sef is a multi-lateral
trading facility, in which many participants can trade against
But how? Well by any means of interstate commerce.
So what does that mean? Well any way you like as long as
every customer has the ability to view, transmit and execute
any orders on the facility.
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