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Pipelines: Nick Solinger Talks Market Infrastructure for SEFs

It’s been a historic year for swap execution facilities as more were launched in the wake of Dodd-Frank rulemaking by the Commodity Futures Trading Commission.

Nick Solinger, head of product strategy and chief marketing officer of Traiana, said that its been a good year for firms getting connected to SEFs and for SEFs getting off the ground. The firm connected 16 FCMs to 16 SEFs with six more on the way.

“The typical FCM has been able to clear, three, four, five, six different venues with that one connection to our hub,” Solinger said. “Buy-side firms can similarly trade across multiple SEFs with one-credit line. So we really have realized that initial vision we had as an industry.”

Solinger said that firms like Traiana are finding growth within the FCM community. That’s been driven largely by firms that are looking for ways to lower infrastructure costs and expand service offerings. Traiana has been offering to help FCMs with things such as trade date processing and matching, trade reconciliation and other workflow issues.

In 2015, Solinger said that the firm will continue to extend its current suite of services to the FCM space, but also extend to new asset classes as rules are introduced.

“Even though it feels like we’re coming to the close of some of the regulations for SEF trading and things like that, we’re coming into another round,” he said. “We’re beginning to see voluntary FX clearing happening and there is a [Dodd-Frank] mandate for (non-deliverable forwards) NDFs by the CFTC.”

With another round of interest rates clearing rules, and new MIFID/MIFIR regulations occurring in Europe in 2015, Solinger expects to see more impacts on options on futures in terms of time-stamp reporting, audit and risk management functions at firms.

“We think it’s going to be another fairly busy year for both us and the FCM community,” he said.

**Editor’s Note: For more information on FX Regulation and NDF’s please see the FX Swaps Regulation page on

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