Swaps Shift Sees Quiet Start

Most investment firms wait to use swap execution facilities, Tabb says.

Most money managers that use swaps didn’t trade on new government-mandated platforms yesterday because use of the systems remains voluntary, according to a poll conducted by Tabb Group LLC.

The Boston-based researcher and consultant asked 36 investment firms that collectively manage more than $6 trillion if they used swap-execution facilities yesterday, when the U.S. Commodity Futures Trading Commission required the venues to open, according to a report. Seventy-seven percent said they didn’t use a SEF, 14 percent said they did, and 9 percent said they only sent test trades, Tabb said.

‘Aren’t Ready’

“Those pieces of the infrastructure aren’t ready, so it becomes problematic to trade on a SEF if you are trading for a real-money account,” she said.

Page 1 of 2

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Advertisement. Closing in 15 seconds.