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7.6 Exchange Trading of Swaps

<< Title VII Overview

7.6 Exchange Trading of Swaps

The following links provide expanded analysis within this section:

            7.6.       Exchange Trading of Swaps

                        7.6.1.    What Swaps are Required to be Traded on an Exchange?  Title VII mandates that a swap that is cleared on a DCO must be traded on a board of trade designated as a "contract market" (i.e., a futures exchange) or a SEF.[§723]

                        7.6.2.    What is a "Swap Execution Facility"?  A SEF is a facility in which multiple participants have the ability to execute or trade swaps by accepting bids and offers made by other participants in the facility or system through any means of interstate commerce.  Given that the initial exchange trading of swaps is likely to be relatively illiquid, it is unclear whether swap participants will be required to transact directly with the relevant exchange or if participants may contact dealers off the exchange to initiate a transaction, provided that the execution of the swap prints on the relevant exchange.[§733]