ICAP SEF (US) has filed its application to be a swap execution facility (SEF) with the Commodity Futures Trading Commission (CFTC) in compliance with the Dodd-Frank Act.
The ICAP SEF will operate markets across multiple asset classes, including interest rate swaps (IRS), credit default swaps (CDS), equity derivatives, commodities and NDFs.
ICAP will offer trading in cleared and uncleared swaps and intends to operate central limit order books (CLOB) and request for quote (RFQ) systems, as well as offering block trade capabilities, electronic crossing and execution via brokers.
Participants will be able to access the ICAP SEF through ICAP trading applications and the platforms provided by independent software vendors or through the ICAP published application programming interface (API). Additionally, approved Intermediaries will be able to provide their customers with access to the SEF, subject to its rules.
John Nixon (pictured), group executive director, Americas at ICAP plc, has been appointed chairman, chief executive and president of the ICAP SEF, which will be headquartered in New Jersey.
Other members of ICAP’s SEF board are: Ivan Ritossa, Independent non-executive director and member of the remuneration and risk committees at ICAP plc; Diane Schueneman, independent non-executive director and member of the audit, risk, remuneration and nomination committees at ICAP plc; Ken Pigaga, chief operating officer at ICAP Americas; and Mark Beeston, chief executive, portfolio risk services, ICAP plc.
Nixon says: “The filing of our SEF application is a milestone for our organisation, but it is also very much a logical evolution of our longstanding efforts to serve the needs of the OTC derivatives marketplace. Since its foundation, ICAP has developed marketplaces designed to provide its customers with effective and efficient means to take and manage risk. ICAP has invested heavily in technology that has permitted it to offer customers the ability to execute transactions on a fully electronic basis or with the assistance of a broker. With our expertise and experience in operating regulated markets, the quality of our technology, and the depth of our customer relationships, we look forward to our SEF serving as a leading facility for the trading of swaps in the new regulated landscape.”