Industry

Swap Execution Facilities and Multilateral Trading Facilities


Swap execution facilities (SEFs) are a 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. Multilateral Trading Facilities (MTFs) are a type of marketplace for trading over-the-counter derivatives and other products in the European Union. They are governed by the Markets in Financial Instruments Directive (MiFID II) and other EU and local rules.

Because SEFs and MTFs have self-regulatory responsibilities, they are considered “exchanges” under Ontario securities law. If a SEF or MTF 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 and MTFs from the requirement to be recognized as an exchange, subject to the terms and conditions set out in each order: