Euromoney Research Group presents a detailed report into the swap execution facilities (SEFs) sector. The bespoke content offers insight into the confusion over the adoption of these rules and looks at the future opportunities for all market participants.
In this report, Euromoney Research Group sheds light on the trials and tribulations of the introduction of swap execution facility (SEF) rules in the US and its effects globally.
After the shock of rapid and sweeping structural market changes, we talk to one of the regulators instrumental in establishing them. US regulators are now working out the kinks in the legislation and hopes are high for continued adoption of this way of trading.
To ascertain the remaining challenges, we surveyed FX and IRS market participants, including buy-side firms such as hedge funds, banks, corporates and insurance companies all around the world.
Euromoney also spoke to many of the market-leading SEFs to get their views on where this market is going. Issues covered in this report include the continuing global regulatory work, as countries attempt to comply with the principles agreed at the G20 Pittsburgh summit in 2009.
We ask whether enough cooperation is happening among regulators and what can be done to speed up the process.
We uncover the barriers to trading on SEFs and what market participants say will encourage them to transition to this way of doing business.
Throughout the process we found market participants to be open and honest about the difficulties faced and those that lie ahead. Underneath it all, however, was a confidence that everyone will benefit from the increased transparency that is at the heart of introducing SEFs.