Swap Execution Facilities

Swap execution facilities (SEFs) are a new type of marketplace for trading swaps in the United States. They are governed by the Dodd-Frank Act and rules of the United States Commodity Futures Trading Commission.

Because SEFs have self-regulatory responsibilities, they are considered “exchanges” under Ontario securities law. If a SEF provides access to Ontario participants, it is considered to be carrying on business in Ontario and must be recognized as an exchange or obtain an exemption from recognition.

The Commission has exempted the following SEFs from the requirement to be recognized as an exchange, subject to the terms and conditions set out in each order: