cftc and sef tradingTrading volumes on Swap Execution Facilities, or in short SEF, and on Designed Contact Markets (DCMs) are now encouraged by CFTC Acting Chairman Mart Wetjen.

What are SEFs? SEFs are licensed trading venues, focused on forcing complex derivatives called swaps out of the ‘private’ over-the-counter market and into open trading venues.

Electronic trading platforms that want to trade swaps were to start obeying the new rules on October 2 of last year, although full compliance with more harsh SEF directions is taking more time than planned.


the CFTC issued a ‘no-action letter’ that delivers relief to compliance with certain recordkeeping provisions. The letter provides relief to keeping electronic text messages and records in a form and manner identifiable and searchable by transaction. Many SEF clients are finding the new recordkeeping necessities time-consuming and expensive to comply with.