Integral Development Corp., provider of a cloud-based foreign exchange-trading platform, has filed an application with the Commodity Futures Trading Commission to launch a swap execution facility (SEF) in compliance with agency’s recently passed SEF rules.
In announcing the filing, Integral joins a roster of several players that have filed with the CFTC to launch SEFs under the Dodd Frank Act’s derivatives reform legislation.
Last week, the CFTC approved Bloomberg’s application as the first SEF, which filed on June 4th. Tradeweb, MarketAxess, State Street and interdealer broker GFI have also submitted applications to launch SEFs, which the CFTC is expected to act upon. Trading by SEFs is scheduled to begin on October 2nd.
Pending approval, Integral will be offering a regulatory-compliant FX trading platform with all necessary connections to liquidity providers, clearing houses, swap data repositories (SDRs), among other features.
Integral said it would enable clients to make “a seamless transition” from unregulated to regulated instruments.
“As a natural extension of our OTC FX platform FX Grid, we took on the challenge of helping our customers, partners, and liquidity providers navigate the new regulatory landscape. We have created a SEF that preserves what is best about OTC markets – relationships, choice, resiliency, and bespoke business models, thereby minimizing any potential disruption to our customers’ foreign exchange trading businesses,” commented Harpal Sandhu, CEO of Integral, in today’s announcement.
FXGrid, a multi-sided trading network that connects all segments of foreign exchange from retail to institutional banks and brokers, to money center banks, investment management firms, to algorithmic trading firms – on a global scale.
Integral’s SEF will support request for quote (RFQ) and an integrated order book. For liquidity providers, Integral offers easy access to a large institutional market while taking care of all the integration issues. For buy-side firms, Integral provides on-boarding and workflow solutions that are tailored to their interests while easing the transition to regulated markets, the company said.