The U.S. Commodity Futures Trading Commission (CFTC) announced today that it had issued an Order of Registration to NEX SEF Limited (NEX SEF), of London, England, granting it registration status with the CFTC as a Swap Execution Facility (SEF). NEX SEF is a private limited company, incorporated in the United Kingdom and a wholly-owned subsidiary of NEX Group plc, also headquartered in London.
SEFs are financial swap trading platforms that provide pre-trade information and a mechanism whereby eligible participants can execute swap transactions.
The regulation of SEFs was left to the CFTC and the Securities and Exchange Commission by the Dodd-Frank bill passed in 2010, specifically Title VII, which deals with the regulation of over the counter derivatives.
Incorporated in June 2007, NEX SEF – a private company that deals with “activities auxiliary to financial intermediation” – has changed its name three times. Founded originally as Flight Screen Ltd., it changed its name the same year to My Treasury Ltd. In 2016, the company became EBS Global, finally settling on its current name in January 2017.
The CFTC issued the Order under Section 5h of the Commodity Exchange Act (CEA) and CFTC Regulation 37.3(b). After review of its application and associated exhibits, the CFTC has determined that NEX SEF demonstrated compliance with the CEA and the CFTC’s regulations applicable to SEFs.
In announcing its approval of NEX SEF, the CFTC stated: “The terms and conditions of the Order require, among other things, that NEX SEF comply with all provisions of the CEA and all requirements in the CFTC’s regulations, as may be amended or adopted from time to time, that are applicable to SEFs.”