SEF Trading 2017: Still Waters Run Deep
October will mark the four-year anniversary of the first Swap Execution Facility (SEF) trade. In that time adoption has reached a steady state. Today nearly 40% of all US Interest Rate Derivatives (IRD) trading is executed via SEF, but that is roughly where the market has been for the past couple of years. SEFs remain a key battleground for the Dodd-Frank vision of a transparent and modern derivatives ecosystem, but the roadblocks to further adoption are entrenched. An uncertain regulatory future under a presidential administration that has pledged to rethink much of what is already in place, a litany of operational challenges with respect to clearing and straight-through-processing, and a challenging liquidity environment are potential sources of uncertainty facing US swap market participants.
This TABB Group report, “SEF Trading 2017: Still Waters Run Deep,” assesses the degree to which the once-opaque US swaps market has transitioned onto regulated Swaps Execution Facilities (SEFs) and analyzes market share shifts that underpin steady overall volumes. The report details trends in trading volumes occurring on and off SEF venues, color around clearing trends and influence on product selection, and trends driving flows between US and European swaps markets.
- Fixed Income