Crunch time over Sefs as Asian banks weigh up costs of participation
Trading on swap execution facilities started in earnest in October, but two months later Asian institutions are unclear what it actually means for them. What steps are they taking to adapt to the new set of challenges that Sefs bring?
According to the US Securities and Exchange Commission a swap execution facility, or Sef, is "a trading system or platform in which multiple participants have the ability to execute or trade security-based swaps by accepting bids and offers made by multiple participants in the facility or system, through any means of interstate commerce", but for Asian dealers it's simply a headache.
After some initial teething issues, Sef trading has been operational for two months but the real test for the
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