CBOE and NYSE Euronext are planning to form venues for derivatives that now trade over-the-counter, Bloomberg reports. The exchange operators may create swap-trading platforms for privately negotiated derivatives that the government plans to move onto regulated trading systems or exchanges that will provide public data about prices and transactions. As per the Dodd-Frank act, derivatives sent to clearinghouses, the member-funded organizations that guarantee transactions and monitor collateral, are required to trade on swap-execution facilities (SEFs) or exchanges. Most contracts are currently traded between broker-dealers over the phone or through private electronic systems.
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