February 5, 2016

Thomson Reuters SEF Captures 55 Percent of Dealer-to-Client FX Flows in Q4 2015

NDF and Options Volumes grow 322 percent and 2000 percent respectively in the 24 months to year-end 2015 on Thomson Reuters SEF which recently received permanent approval status from the U.S. Commodity Futures Trading Commission (CFTC)

NEW YORK/LONDON - Data from analytics and research firm Clarus Financial Technology shows that Thomson Reuters SEF (Swap Execution Facility) leads trading volumes in the FX dealer-to-client market segment in Q4 2015, with 55 percent of trading flow. This comes as non-deliverable forwards (NDF) volumes on the Thomson Reuters SEF have grown by 322 percent and FX options volumes by over 2000 percent in the 24 months to year-end 2015.

"We have monitored SEF trading activity since its inception in October 2013,” said Tod Skarecky, VP Americas at Clarus Financial Technology. “Thomson Reuters has consistently been the top performer, with particularly notable growth in options activity throughout 2015."

The Thomson Reuters SEF allows customers to trade FX options, NDFs and NDF swaps electronically through multibank request-for-quote liquidity and an anonymous central limit order book. On January 22, 2016, the Thomson Reuters SEF received permanent approval status from the U.S. Commodity Futures Trading Commission (CFTC).  

“Since launching in October 2013, volumes on the Thomson Reuters SEF have been steadily growing but in 2015 due to significant interest in FX options trading and growing acceptance of the value of trading on regulated platforms, we saw a real jump in the number of buy-side firms choosing to route trades via our SEF,” said Jodi Burns, global head of regulation and post-trade at Thomson Reuters. “This has seen the majority of FX dealer-to-client volumes flow through our platform in the last quarter which is a significant achievement in such a competitive market.”

Designed specifically to help customers meet their FX trading, clearing and reporting obligations as mandated by the Dodd-Frank Act, the Thomson Reuters SEF provides a complete, end-to-end workflow solution with straight-through processing and settlement.

“Our recent permanent CFTC registration is also welcome official recognition that our technology, governance and operational procedures are of the high standards required to manage and operate a quasi-exchange,” adds Burns. “Now that the rigorous approval process is behind us, we look forward to working with the CFTC on further developing the SEF rules and adding additional functionality to the platform at the request of customers.”

Thomson Reuters
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Kate Reid
Thomson Reuters
Tel: +44 (0)20 7542 2215
Email: kate.reid@thomsonreuters.com