US derivatives trade body the Futures
Industry Association (FIA) has launched a service charting trading volumes on
swap execution facilities (SEFs), in line with similar offerings from the
International Swaps and Derivatives Association (ISDA) and regulatory data.
Compiling data for SEFs has caused some
difficulty for US derivatives regulator the Commodity Futures Trading
Commission due to a lack of standardised volumes reporting. So far, volume
reporting has relied upon trades reported to swap data repositories such as the
Depository Trust and Clearing Corporation.
The FIA service will begin as a monthly
review of volumes but will become more frequent in the future. The data will be
collated from the venues directly to show volumes and trends over time.
The service will begin with data from 15
SEFs, including venues operated by ICAP, Tradeweb and Bloomberg.
SEF Tracker reports will complement a growing number of sources of information
about trading activity on these new trading venues,” said Walt Lukken, president
and CEO of the FIA. “We hope our reports will contribute to greater
understanding of the dynamic changes taking place in today’s derivatives
similar service offered by ISDA has measured SEF volume data since January. In
a research note based on the data it published this week, ISDA stated that in
the week ending 28 March, 70% of SEF trading in interest rate derivatives had
occurred in products listed under the CFTC mandatory trading rule for SEFs.
so-called ‘made available to trade’ rule requires SEFs to list products they
will offer and market participants must therefore trade those products on a SEF
of their choosing.