BGC
BGC’s SEF provides participants with tailored approaches to execution and clearing of derivatives trades. The SEF includes fully compliant execution methodologies including anonymous central limit order book (CLOB), name disclosed request-for-quote (RFQ), intra-day electronic auctions, indications of interest, and voice managed orders for blocks and non-blocks. |
Instruments
Daily auctions
of required and permitted products run at regularly scheduled times. Market
participants are shown swaps with pre-set mid-market prices, calculated
following price discovery. When interest is expressed, trades can be executed
anonymously.
The full list of required and permitted products can be
found in the SEF rulebook.
Access
Participants are on-boarded via BGC derivative markets’
participant application and rulebook. Other participants can gain access
through nomination as an authorised customer by a participant.
The firm’s SEF offers tailored approaches for its market
participants, which vary depending on required and permitted products. Market
participants can utilise BGC’s platform to segregate US person/non-US person
transactions on a graphical user interface and application programming
interface via instrument choice and contra-counterparty filtering.
Liquidity
Daily volume activity is published on the SEF’s
website.
BGC SEF promotes greater access to liquidity, providing a
live, executable anonymous CLOB with counterparty names shown post-trade, named
RFQ, daily auctions, and voice support. The BGC Trader front end displays order
book prices for swaps, subject to mandatory clearing segregated by a clearing
venue and a separate line for bilateral prices.
Post-trade
BGC Derivative Markets forwards required
transactions to each derivative clearing organisation selected by the
participant or its customer. BGC delivers files for all trades containing
relevant information to the Depository Trust and Clearing Corporation and other
swap data repositories in line with industry standards.
Future plans
BGC is working to increase its Introducing broker
network, address industry issues around certainty of clearing, and provide
alternative ways to trade swaps within the rules set forth by the CFTC.