Latest Insight
Last Look - Oil posts a weekly gain ahead of the OPEC+ meeting | Gas posts a $1.05/MMBtu weekly loss

CFTC Approves AEGIS Swap Execution Facility

First approval since CFTC clarified SEF registration requirements in September 2021 

The Woodlands, Texas, July 21, 2022 – AEGIS Hedging Solutions (“AEGIS”) today announced that its application to form a registered Swap Execution Facility (“SEF”) has received final approval from the Commodity Futures Trading Commission (CFTC).

AEGIS SEF, a regulated subsidiary of AEGIS, enables compliant, efficient, and transparent execution of hedging transactions for companies managing commodity price risk.

“AEGIS SEF is a step-change for advisor-assisted hedging,” said Justin McCrann, President of AEGIS SEF. “The embedded compliance and underlying technology are step changes for a market that has historically operated through phone and chat-based negotiations.”

The Dodd-Frank Act introduced regulations to improve transparency in swap transactions, including requirements to execute certain transactions on SEFs. The CFTC clarified, via Staff Advisory 21-19, conditions that require certain Commodity Trading Advisors and Introducing Brokers to execute hedging transactions on SEFs.

AEGIS SEF is the first swap execution facility approved since these clarifications.

Bryan Sansbury, CEO of AEGIS added, “The customers we serve trust us to manage their commodity price risk and our compliance obligations. Launching the industry’s first SEF was not in our strategic plans; however, compliance is paramount and we believe the hedging markets will be better as a result.”

In accordance with open access requirements, AEGIS SEF will be available to Commodity Trading Advisors (including AEGIS CTA) and Introducing Brokers.

For more information on why AEGIS created a swap execution facility (and other hedge advisors may need to do the same), please click here. If you are interested in executing hedges on AEGIS-SEF, please visit aegis-hedging.com/swap-execution-facility.

View the official press release here
See the CFTC announcement here
Related: Haynes Boone Helps AEGIS as First CTA to Register with CFTC as a Swap Execution Facility

 

About AEGIS 

AEGIS simplifies commodity and environmental markets for companies who manage their commodity exposures and/or emission footprints. AEGIS has unmatched technology and expertise to deliver market insights, tailored hedge strategies, efficient trade execution, and full-cycle management of hedge positions – all designed for regulatory compliance. Building on its core energy hedging capabilities, AEGIS has recently completed four acquisitions to extend its expertise in environmental and metals markets, increase its analytics capabilities and fully integrate a SaaS E/CTRM software platform. AEGIS was recently named the industry leader in hedging solutions for an unprecedented sixth consecutive year. To learn more, visit AEGIS’ website at www.aegis-hedging.com

About AEGIS SEF

AEGIS SEF (US) LLC, a subsidiary of AEGIS Hedging Solutions, is a Swap Execution Facility approved by the Commodity Futures Trading Commission (“CFTC”). AEGIS SEF operates markets for commodities, interest rate swaps and other instruments. AEGIS SEF offers a venue for trading in uncleared bilateral OTC swaps through a central limit order book (CLOB) and request for quote (RFQ) system, as well as offering block trade capabilities via counterparties. For more information, please go to https://aegis-hedging.com/swap-execution-facility.

 

Media Contacts
Lauren Trice • 346-277-0971 • ltrice@aegis-hedging.com

 

Updated on July 29, 2022 with the link to the press release issued by Haynes Boone. 

 

^