The launch of this swap execution facility (SEF), SwapExSM, coincides with the 2012-2013 implementation of significant regulatory changes in the United States and Europe. State Street's comprehensive derivatives solution, DerivOneSM, already includes clearing, servicing, collateral management, valuation, and risk and analytics. As the Dodd-Frank Act and similar measures under European Market Infrastructure Regulation (EMIR) and Markets in Financial Instruments Directive (MiFID) are adopted, the large majority of swap contracts currently traded over the counter (OTC) directly between two parties will migrate to multi-party electronic trading platforms, creating greater price transparency and increased liquidity as more participants enter the market.
SwapEx provides the first step in a global end-to-end solution that reduces operational risk through the automation of the many stages of derivatives processing, including execution, clearing, collateral management, cash and securities flows between the middle and back offices, transaction cost and risk reporting, valuations, and the reconciliation of positions.
State Street plans to file its SwapEx registration with the United States Commission Futures Trading Commission (CFTC) when the application window opens later this year. In preparation for the launch, State Street has entered into an agreement with National Futures Association (NFA) to perform regulatory services for State Street's SEF.
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Additional details on utilizing this service may be obtained by contacting one of our representatives. Charley Cooper Tomas Zikas Gerald MacLeod Brian Kelly, CFA Bryan Farrell
Additional details on utilizing this service may be obtained by contacting one of our representatives.
Brian Kelly, CFA