Canadian Regulators Provide Temporary Exemptions For Swap Execution Facilities

Securities regulators in Ontario, Quebec, Alberta and Manitoba have temporarily exempted swap execution facilities, or SEFs, from recognition as exchanges. This temporary exemption comes as a result of the recently established U.S. regulatory framework for a new type of marketplace for trading swaps.

REGULATION OF SEFS IN THE UNITED STATES

The regulatory framework for registering and operating SEFs was established by the U.S. Commodity Futures Trading Commission (CFTC) as a result of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This framework creates registration, operation and compliance requirements for SEFs. An SEF is a standardized electronic platform defined as "a facility, trading system or platform in which multiple participants have the ability to execute or trade swaps by accepting bids and offers made by other participants that are open to multiple participants in the facility or system, through any means of interstate