Self-certification incentive tempts SEFs to Made-Available-to-Trade

SEF
By Daniel O'Leary
03 Jun 2014

US regulators have created a swap execution facility regime that incentivises SEFs to issue made-available-to-trade determinations against contracts where they see potential liquidity, but that has led to a decline in volumes once the MAT becomes active, according to participants.

As self-regulatory organizations, SEFs are allowed to issue MATs for derivatives that are centrally cleared and that also have sufficient, or potential liquidity. The US Commodity Futures Trading Commission can place a stay on the MAT, but if after 90 days the regulator has not repealed it, then ...

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