Bloomberg and BGC Launch SEFs

Bloomberg was first to submit its SEF application to the CFTC on June 4 and first to receive approval on July 30. Its SEF offers Bloomberg Professional service subscribers cross-asset liquidity for interest rate swaps, credit default swaps, foreign exchange swaps and commodities derivatives via request-for-quote (RFQ) and order book trading, as mandated by Dodd-Frank. It is fully integrated with Bloomberg's data, news and analytics to provide clients a single, comprehensive platform.

BGC's technology infrastructure includes 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 utilize 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.

"Swaps market reform is a cornerstone of Dodd-Frank regulation that will continue to impact the global markets," says Ben Macdonald, Bloomberg's global head of product and president of the Bloomberg SEF. "With the launch of our SEF, we can provide our customers a complete, multi-asset class solution to help them meet these regulatory requirements, while increasing transparency in today's dynamic marketplace."