CFTC Gives Green Light for Gain Capital’s GTX SEF LLC application as a Swap Execution Facility

The U.S. Commodities Futures Trading Commission (CFTC) has today announced the issuance of a notice of temporary registration which provisionally approves GTX SEF, LLC (GTX) as a Swap Execution Facility (SEF).

GTX is owned by Gain Capital the publicly-traded Forex broker on the NYSE under ticker symbol GCAP, and GTX now becomes the 20th SEF temporarily registered by the CFTC so far, and following FortuneZ coverage when the CFTC issued GTX relief. The news marks a step closer for the CFTC to now review GTX’s application for full registration, along the other temporarily registered SEFs.

The company’s similar named GTX Direct division under the Gain Capital Holdings corporate structure, provides institutional clients access to foreign exchange and commodities trading, and apparently the GTX name was used for the SEF application may appeal to that non-retail audience for trades to be conducted on a SEF, which is a newly traded market for certain derivatives that have become listed (exchange traded versus previously traded off-exchange).

A copy of the approval letter was dated April 16th 2014, and sent to Mr. Alex Bobinski, Chief Compliance Officer of GTX SEF LLC. The letter emphasized, that the temporary approval doesn’t permit GTX to list any products for trading as of yet, as the firm would need to obtain approval beforehand for such products under sections 40.2 or 40.3 or CFTC regulations. In addition, even for approved products, if they require mandatory clearing the CFTC must also review a required clearing agreement that the firm would need to secure for clearing such trades, as per the letter. Shares of GCAP hovered around $10.00 as the trading day concluded in NY. The company recently reported a sharp recovery of trading volumes, after the drop in February, as covered by FortuneZ.

FortuneZ was unable to reach Gain Capital for comments around time of publication.

(Photo: flickr)

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