ISDA paper: SEFs Can they improve the Structure of OTC Derivatives Markets?


ISDA Press release here about new paper they have just published, outlining their views on The role, impact and optimal structure for SEFs in the OTC derivs market.

ISDA position is that SEFs should:

  • Provide maximum choice in trade execution to market participants;
  • Provide pre- and post-trade transparency while maintaining liquidity;
  • Have reasonable, tailored and product specific block trade exemptions that reflect the risk of a transaction instead of a “one size fits all” approach;
  • Grant access to a broad range of qualified market participants. Access rules should be objective and applied impartially;
  • Be flexible enough to allow business models to evolve over time;
  • Products required to be traded in SEFs should be limited to liquid, mature products;
  • Rules should not be simply imported from other, fundamentally different markets but should take into account the liquidity, average trade size and average trade frequency of the derivative products and the relative sophistication of the market participants.

The full paper is here: SEFs “Can they improve the Structure of OTC Derivatives Markets?”

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