The US Commodity Futures Trading Commission (CFTC) has approved the application of Chicago Mercantile Exchange (CME) for temporary registration as a swap execution facility (SEF).
CME SEF is an operating division of the Chicago Mercantile Exchange Inc, a Delaware corporation and a wholly-owned subsidiary of CME Group, a publicly traded company.
A SEF is a category of CFTC registered entities created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to provide greater pre-trade and post-trade transparency to the swaps market.
CME SEF will be required, as will all future temporarily and fully registered SEFs, to demonstrate continued compliance with all applicable provisions of the CEA and CFTC regulations, including part 37, and any future regulations, amendments, guidance, and interpretations issued by the CFTC.
As a next step, the CFTC will undertake a substantive review of CME SEF’s application for full registration.