AEGIS Swap Execution Facility (AEGIS SEF) has provided an update on its financial counterparty (Dealer) participation and first quarter 2023 trading activity.

AEGIS SEF now has 18 Dealers and nearly 330 commercial end users executing hedging transactions. Each Dealer and Participant has signed definitive documentation to enable the execution of hedging transactions on AEGIS SEF.

“As transaction volume grows, we are seeing an increase in Dealer interest to execute transactions on our hedging marketplace,” said Justin McCrann, President of AEGIS SEF. “To meet demand for an efficient, compliant solution that can facilitate swaps between Dealers and Participants, we will begin executing other underlying products in the near future, including bilateral interest rate swaps.”

Trades executed on AEGIS SEF increased 60% month-over-month and 224% quarter-over-quarter. March saw monthly highs for trades executed, products traded and number of trading entities. The month also recorded daily and weekly volume highs as Participants sought certainty in volatile energy and metals markets.

“Creating and registering as a SEF was never on our radar. Our desire to create a hedging marketplace opened a larger discussion on the regulatory requirements for Commodity Trading Advisors (sometimes referred to as hedge advisors). We hope sharing what we’ve learned will prove insightful for others who are required to travel the same path,” said Andrew Furman, Chief Compliance Officer of AEGIS SEF.

AEGIS SEF is the first Swap Execution Facility designed and built for Commodity Trading Advisor (CTA) Broker Firms to assist their clients with permitted hedge transactions in compliance with Commodity Futures Trading Commission and Dodd-Frank regulations.