On Wednesday, the FIA announced it has published the third issue of FIA SEF Tracker, a periodic report on trading activity that takes place on swap execution facilities (SEF).
This month’s report shows an uptick in the volume of interest rate swaps traded on SEFs, a decline in the volume of credit default swaps, and a roughly unchanged amount of foreign exchange forwards traded on SEFs. In addition, it also illustrates that trading venues operated by inter-dealer brokers continue having the largest IRS volumes, but the majority of SEF trading in the CDS market is going through venues operated by other companies such as Bloomberg, IntercontinentalExchange and TradeWeb.
Walt Lukken, president and CEO of FIA, said via a press release,?”We’ve included a few enhancements to FIA’s SEF Tracker. In addition to statistics on the volume of trading and comparisons of market share, we’ve added some charts showing interest rate swap trading by currency and more information about credit default swap trading. We’ve also started tracking two more SEFs-ICAP Global Derivatives Limited and LatAm SEF LLC.”
FIA plans to continue publishing the SEF Tracker monthly, using public data collected directly from the SEFs. The report also includes simiilar data from trading venues that have registered with the Commodity Futures Trading Commission as designated contract markets rather than as SEFs.
“FIA is committed to providing research and analyses that contribute to informed public discussions about derivatives markets,” Lukken said. “The information contained in our SEF Tracker reports provides a useful window into the development of these new trading venues and the overall trends in trading activity in the products affected by the CFTC’s rules and regulations.”