The Securities and Exchange Commission has approved its draft rules on security-based swaps trading.

Unlike the Commodity Futures Trading Commission, the SEC will allow Swap Execution Facilities (SEFs) to reveal customers’ price information to just one dealer.

The CFTC insists on five.

The five SEC commissioners voted unanimously to adopt the draft, drawn up to fulfil the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules have now entered a 60 day public comment period.

At the heart of the US reform of the swaps market was a requirement that swap trading move from the over-the-counter market to regulated SEFs.

The Dodd-Frank Act also sought to increase transparency and competition in the market.

The SEC said it would define a security-based SEF as: “a system or platform that allows more than one participant to interact with the trading interest of more than one other participant on the system or platform”.

The CFTC, which will oversee all non-security based swaps, the vast majority of the market, requires that swap customers ask for at least five bid/offer quotes from dealers.

The SEC’s more lenient model is seen a win for the market, as it gives firms more freedom to chose how much information about their trades they give to the market.