Forward-starting swaps surge as market avoids Sefs
Derivatives users in the US have turned to forward-starting swaps and non-standard tenors in an attempt to avoid trading on Sefs
The use of forward-starting interest rate swaps has surged as US derivatives users attempt to avoid executing trades on swap execution facilities (Sefs), a Commodity Futures Trading Commission (CFTC) committee has heard.
Speaking at a meeting of the CFTC's Technology Advisory Committee yesterday, Tod Skarecky, senior vice-president for the Americas at Clarus Financial Technology, said only a little more than half of US dollar fixed-to-floating interest rate swaps are traded on Sefs. The
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