SuperDerivatives has filed an application with the US Commodity Futures Trading Commission (CFTC) to become a fully registered swap execution facility (SEF).
In line with the regulations being introduced as part of the Dodd-Frank act in the US, SuperDerivatives has developed SDX Trading, a suite of SEF-compliant electronic trading solutions for currency and commodity derivatives.
SDX Trading will offer the choice of anonymous or disclosed trading, and all products will be eligible for clearing via a CCP where possible. Together with its front office platform, SDX, and its risk management system, RMX, SuperDerivatives now offers a consistent workflow for trading FX and commodity products in a regulated electronic market.
SDX Trading will become a subsidiary of SuperDerivatives and will be led by David Collins, formerly head of strategic solutions at the firm. David Gershon, founder and chief executive of SuperDerivatives, and Lewis Ranieri will serve on its board of directors.
Collins says: “For over a decade SuperDerivatives has been providing OTC derivatives market participants with the technology and expertise to improve transparency and set best practice in their trading and hedging operations. The regulations being introduced as part of the Dodd-Frank act in the US have enabled us to draw on this experience and develop SDX Trading.
“We have filed our application for SDX Trading to become a regulated SEF, and will be working closely with the regulators to provide our customers with a fully compliant electronic execution platform for a wide range of swaps products and asset classes, starting with FX and commodities.
“We welcome the regulatory drive in the OTC markets, which we believe will offer more transparency and deeper access to liquidity for swap market participants.”