One Little, Two Little, 40 Little SEFs

Once the rules governing swap execution facilities (SEFs) are finalized, there is expected to be a rush of companies launching their own SEFs. The opportunity to get in on the ground floor should draw 30 or 40 initial entrants, judging by the early response. But while competition is often welcomed for the variety of services and downward price pressure it provides, that 30-40 number is considered excessive.

"Most of the buy-side accounts I've spoken to recognize that we're going to have a