The US Commodity Futures Trading Commission (CFTC) said on Friday it has issued an order to grant registration to three Swap Execution Facilities (SEFs), including New Jursey-based GTX SEF Llc., a unit of forex broker giant Gain Capital. The other two entitites that will received fully-regustered status are New York-based FTSEF Llc. and New Jursey-based TeraExchange Llc. All three companies have been operating under temporary registration status until now.
The regulator said that the tree companies have demonstrated compliance with the Commodity Exchange Act (CEA) and the CFTC’s rules regarding SEFs, which is a prerequisite to obtaining a SEF registration. Under the CFTC’s regulatory framework, entitites that have reveived an order of registration should comply with all representations and submissions made by it in support of its application for registration as a SEF.
After the inclusion of the three newly-registered SEFs, there are 21 SEFs in total fully registered with the CFTC. SEFs are trading facilities that operate under the CFTC’s regulatory oversight for trading and processing swaps.
GTX is a fully-owned subsidiary of Gain Capital Holding, the US’ second largest forex broker by retail client assets and the world’s fourth one by retail forex trading volume. It received temporary SEF registration with the CFTC in April 2014. In addition to SEF for forex trading, the company also offers prime of prime services and electronic communications network (ECN) services. Its prime of prime solutions, which is available under a white label partnership, allow clients to connect with institutional liquidity sourced from over 50 global banks and top-tier liquidity providers. Meanwhile the ECN, which features options for algorithmic trading, pricing aggregation, and order management among others, is especially designed for institutional investors.
GAIN Capital has global presence across 180 countries in North America, Europe and the Asia Pacific regions. The broker serves retail and institutional clients alike on the exchange-traded and OTC markets. The brokerage offers trading in forex, commodities, bonds, indices, and global equities, among others. It operates under the trading brands Forex.com and City Index for retail clients and GTX and Gain Capital for institutional operations. The brokerage has, through its subsidiaries, licenses from the relevant authorities in the US, the UK, Canada, Australia, Hong Kong, Singapore, and Japan.
FTSEF is a unit of FlexTrade Systems Inc., a provider of broker-neutral, execution and order management trading systems for equities, forex, options, futures and fixed income securities. TeraExchange is owned by Tera Group Inc, which provides a multi-asset trading platform for Bitcoin derivatives, interest rate swaps, credit default swaps and non-deliverable forwards.