The European SEFs: How OTFs will Change the European Marketplace

OTFs will debut along with Mifid II in January 2018, offering special trading venues where derivatives will be subjected to increased levels of pre-and post-trade transparency. 

SEFs vs. OTFs

In October 2013, in the wake of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which entered the statute books some three years earlier, the US markets were introduced to swap exchange facilities (SEFs) for the first time. SEFs are swaps trading platforms designed to yield greater levels of pre-trade transparency. The Commodity Futures Trading Commission’s (CFTC’s) move was a bold one, aimed at firming up the regulatory environment around one of the industry’s largest over-the-co