Sefs: Dead on arrival?
Bloomberg is threatening to sue the US Commodity Futures Trading Commission over uneven margin rules that it fears will drive the market away from swaps and into new futures contracts. Peter Madigan reports
It’s hard not to feel sorry for swap execution facilities (Sefs). Since the Dodd-Frank Act was published in July 2010, making Sefs one of only two places that standardised over-the-counter derivatives could be traded – the other being exchanges – these new platforms have been waiting for the party to start. They may find they have been queuing for their own funeral.
On March 11, Bloomberg, one of the would-be Sefs, threatened to take legal action unless the US Commodity Futures Trading
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