CFTC proposes ending SEF order book mandate

The CFTC has proposed removing a 13-year-old order book requirement for certain swap transactions, with public comments due within 30 days of its Federal Register publication. Summary SEFs would no longer have to provide order books for permitted transactions. Order book requirements would remain unchanged for swaps classified as required transactions. The CFTC said traders have rarely used the affected order books despite their availability. Public comments will remain open for 30 days after the proposal enters the Federal Register. The Commodity Futures Trading Commission said in an Aug. 20 regulatory notice that it is seeking feedback on an amendment to Regulation 37.3(a)(2), which sets the minimum trading functions that a swap execution facility must provide. Under the proposal, a swap execution facility, or SEF, would no longer have to offer an order book for permitted transactions. The change would not prevent a platform from keeping the service when its customers use it, but each SEF could decide whether the costs and resources are justified. Current rules require every registered SEF to maintain an order book for all swaps listed on the platform, including products that tra...