BGC Partners’ subsidiary BGC Derivative Markets has received temporary registration approval from the US Commodity Futures Trading Commission (CFTC) to operate a swap execution facility (SEF).
BGC intends to offer trading of regulated swaps from 2 October onwards, consistent with the derivatives trading regulations under the Dodd-Frank Act.
"Receiving CFTC approval to operate a SEF marks the next chapter for our company and our clients, and is a positive step forward for the marketplace," says Shaun D Lynn, president of BGC. "BGC has utilised the strength of its leading proprietary technology and is fully prepared for a new era of derivatives transactions. We are excited to offer clients deeper access to liquidity, as well as increased transparency in the clearing and execution of derivatives trading."
Capitalising on its billion dollar-plus investment in its technology platform, BGC will provide swap market participants with flexible, tailored approaches to electronic execution and clearing of derivatives trades. BGC's technology infrastructure includes fully-compliant execution methodologies such as anonymous central limit order book (CLOB), name disclosed request for quote (RFQ) system, intra-day electronic auctions, indications of interest, and voice managed orders for blocks and non-blocks. Market participants will be able to utilise BGC's platform to segregate US person/non-US person transactions on both a graphical user interface (GUI) and application programming interface (API) via instrument choice and contra-counterparty filtering.