CFTC issues order of SEF registration to AEGIS SEF, LLC
The Commodity Futures Trading Commission (CFTC) today announced it has issued an Order of Registration to AEGIS SEF, LLC granting it registration as a swap execution facility (SEF). AEGIS SEF is a Delaware limited liability company headquartered in The Woodlands, Texas and an affiliate of AEGIS CTA, LLC, a commodity trading advisor.
The CFTC issued the order under Section 5h of the Commodity Exchange Act (CEA) and CFTC Regulation 37.3(b). After review of AEGIS SEF’s application and associated exhibits, the CFTC determined AEGIS SEF demonstrated its ability to comply with the CEA provisions and CFTC regulations applicable to SEFs.
The terms and conditions of the order require, among other things, that AEGIS SEF comply with all provisions of the CEA and the CFTC’s regulations applicable to SEFs.
With the addition of AEGIS SEF, there will be 20 SEFs registered with the CFTC.
As FX News Group has reported, in March 2021, AEGIS Hedging Solutions confirmed that it has filed an application with the CFTC to become a Swap Execution Facility (SEF) under the CFTC’s rules issued pursuant to the Dodd-Frank Act.
AEGIS SEF will enable (i) a request-for-quote (RFQ) function to allow negotiations between clients and financial counterparties and (ii) a central limit order book (CLOB). Trading on the AEGIS SEF will be focused on bona fide hedge transactions; swaps not used for hedging purposes (i.e., speculative trades) will not be permitted.