The US Commodity Futures Trading Commission should abolish an identity-revealing practice that lets dealers such as Goldman Sachs effectively keep asset managers like BlackRock off dealer-only trading venues, said Commissioner Dan Berkovitz and some fund manager groups.
“That’s not a fair market,” the Democratic commissioner said in a recent interview about the swap execution facility practice that requires counterparties to reveal their identities to each other after a transaction. “It’s a barrier to entry to markets and prevents additional liquidity from coming in.”
Berkovitz said the practice, known as “post-trade name give-up,” serves no valid purpose in an era when most standardized products are cleared after being traded anonymously.
CFTC should bar disclosure practice that lets banks keep funds off derivative venues, commissioner says
30 March 2019 9:26pm