SEC Proposes New Rules for Swaps Trading Platforms
The SEC laid out a series of proposals for new swap trading venues Wednesday, including one that was markedly different from one put forward by the CFTC. In an open meeting Wednesday, the SEC, which has jurisdiction over security-based swaps, said it wanted to ensure customers trading on a SEF are able to request a quote from a single dealer, rather than multiple dealers. CFTC rule proposals would require swap users to receive prices from no fewer than five dealers at a time.
The move is likely to quell some concerns among OTC market participants, who are still weighing the impact of the new regulations on their trading revenue, and the impact on the depth of quotes, or liquidity, in the market.
Publication
Wall Street Journal
Date
February 2, 2011
Cross References
Dodd-Frank Act, Title VII, Secs. 723 733; 17 CFR Part 37; 76 Fed. Reg. 1214