MarketAxess Files SEF Application with CFTC

MarketAxess joins Bloomberg and Tradeweb as one of the big existing platform operators who are registering with the regulator, following its finalization of rules regarding how SEFs will operate. In order to increase transparency in the over-the-counter (OTC) derivatives markets, US regulators are mandating that standardized contracts such as swaps trade on electronic platforms and report to data repositories.

"We are pleased that the CFTC has finalized SEF rules and we welcome its oversight of our rapidly growing credit-default swap electronic trading platform" says Rick McVey, CEO at MarketAxess. "As an independent electronic trading network with a broad institutional client network and a wide range of trading protocols, we believe that MarketAxess is ideally positioned to facilitate regulatory objectives to create a more transparent and competitive OTC swaps market."

MarketAxess will offer pre-trade credit chekcing methodologies as part of its SEF capabilities. Trading models for CDS include on the platform click-to-trade, request-for-quote or market, and a central limit order book.