Post-trade risk services and information provider ICAP has applied to the Commodity Futures Trading Commission (CFTC) to operate a swap execution facility (SEF).
ICAP SEF will offer trading in multiple asset classes including interest rate swaps, credit default swaps, equity derivatives and commodities.
The SEF will allow trading in both cleared and uncleared swaps offering both the central limit order book and request for quote market models.
ICAP’s application to operate a SEF brings the total number of operators that have formally applied to the CFTC to 12. The first SEFs are due to begin operating on 2 October and competition is expected to be strong, as platforms try to attract market share.
The ICAP SEF hopes to differentiate itself with key additional features including block trading and electronic crossing via brokers. The system will be available through ICAP’s trading applications as well as third-party software vendors using its applications programming interface. Some ICAP SEF members will also be able to provide their customers with access to the SEF.
John Nixon, executive director, Americas at ICAP will become chairman, CEO and president of ICAP SEF.
“The filing of our SEF application is a milestone for our organisation, but it is also very much a logical evolution of our longstanding efforts to serve the needs of the OTC derivatives marketplace,” he said.