29 January 2015

65591

Christian Voigt - Fidessa

38Posts 98,795Views 0Comments

What role for OTFs?

27 March 2014  |  1367 views  |  0

Last week the CFTC published another no-action letter with respect to trading swaps on a European MTF. At the heart of the discussion is the question of whether European MTFs can be considered as equivalent to US SEFs. Given that a number of banks within the scope of Dodd-Frank also need to trade swaps within Europe, this is an important issue.

In Europe, the discussion around swaps trading currently focuses on MTFs, with no mention (yet) of Organised Trading Facilities. OTFs are introduced with MiFID II to capture all different types of trading and to fulfil the G20 commitment to move OTC derivatives, where possible, to electronic trading venues. Under the new rules, an OTF can exercise discretion with regard to placing and matching client orders. However, the CFTC has been very clear that SEFs must offer non-discriminatory access and not favour one type of participant over another. So I couldn’t help but wonder, why does Europe need discretionary OTFs? Is the US regulator’s stance a means of supporting the agency model, while Europe favours dealer markets, or are their other considerations? With so much up in the air, those firms offering trading in derivatives markets on a global scale still face uncertainty about the future of the swap markets.

 

TagsTrade executionRisk & regulation

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Christian

Return of the concentration rule

22 January 2015  |  3147 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation

No time for sentimentality

06 January 2015  |  2784 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation

Slave to a label?

18 December 2014  |  4285 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation

Systematic Internaliser on a wire

03 December 2014  |  2062 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation

Synchronising regulation

25 November 2014  |  1648 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation

Christian's profile

job title Senior Regulatory Adviser
location London
member since 2013
Summary profile See full profile »
I'm a Senior Regulatory Adviser at Fidessa. I focuse on the growing regulatory and functional requirements for multi-asset automated trading systems, supporting Fidessa's clients across Europe in meet...

Christian's expertise

What Christian reads
Christian writes about
Christian's blog archive
January 2015 (2)2014 (21)2013 (15)

Who's commenting on Christian's posts

Sreeram Yegappan
Ketharaman Swaminathan
Neil Crammond