A dual swap execution facility (SEF) and multilateral trading facility (MTF), ICAP Global Derivatives Ltd. (IGDL) has officially launched and can serve U.S. and European clients.
IGDL has gotten temporary swap execution facility (SEF) approval from the CFTC, which regulate it along with the UK Financial Conduct Authority (FCA), according to a prepared statement from ICAP. The launch was announced by ICAP plc, a markets operator and provider of post-trade risk mitigation and info
“IGDL allows ICAP to bridge the CFTC’s SEF rules with financial services regulation of the United Kingdom and the European Economic Area (EEA), as a UK incorporated entity authorized and regulated by the FCA as well as registered as a SEF with the CFTC,” according to an ICAP statement, which also notes that the “CFTC registration is in addition to IGDL’s UK regulatory permissions, which include the ability to operate a MTF.”
IGDL, which will initially focus on G3 Rates, is also authorized to provide direct access to customers in the EEA and in Ontario, Canada, according to ICAP.
ICAP says it will migrate more products to IGDL and “will seek additional permissions with relevant regulators to operate the IGDL SEF in more jurisdictions, such as countries in the Asia-Pacific region.”
“With this dually regulated entity, market participants from all key jurisdictions can participate in the same global liquidity pool for our G3 rates products,” Laurent Paulhac, CEO of the ICAP SEF, says in the statement.
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