Tradition has hired Robert Pickel, former CEO of the International Swaps and Derivatives Association, as a nonexecutive director of the swap-execution facility the interdealer-broker operates. Scott Fitzpatrick, CEO of Tradition, said Pickel would contribute a "tremendous network of relationships" and a wealth of knowledge and experience to TraditionSEF.
The Commodity Futures Trading Commission is reviewing rulebooks from swap-execution facilities as part of its effort to confirm their status as registered derivatives trading platforms. SEF executives are raising concerns about the CFTC's efforts. "Part of it is that the SEF regime is new so it is hard to know exactly what is correct, but another part may be that some firms are more aggressive than others and may very well have pushed the boundaries beyond where the CFTC is comfortable," said Laurent Paulhac, CEO of ICAP's SEF.
A surprise element of final rules governing swap-execution facilities, as mandated by the Dodd-Frank Act, is prompting concern among foreign exchange platforms. Venues are scrambling because they had assumed that because central clearing hasn't been mandated for foreign exchange products, they wouldn't have to register with the Commodity Futures Trading Commission. They are also concerned that clients will switch to nonregulated platforms, rather than deal with legal and compliance work to use an SEF.
The Commodity Futures Trading Commission recently approved rules that will require all swaps users to transact standardized swaps on swap-execution facilities, likely starting in early December. The exact date depends on when the CFTC publishes the regulations in the Federal Register.