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.
“Our 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 marketplace.”
A 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.
The 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.