Integral Development Corporation, a provider of foreign exchange (FX) trading solutions and services, has filed an application with the US Commodity Futures and Trading Commission (CFTC) to launch the INFX Swap Execution Facility (SEF), under the regulator’s SEF rules pursuant to the Dodd-Frank Act.
The Dodd-Frank SEF compliant FX trading platform from Integral will be a Software-as-a-Service platform if it gains CFTC approval. It aims to preserve the best ease-of-use elements of the changing over-the-counter (OTC) markets and ease the transition towards a tighter regulatory environment in accordance with the wishes of the Pittsburgh G20 meeting back in 2009.
INFX SEF will be a wholly-owned subsidiary of Integral Development Corp. Many others, such as Triana, MarketAccess, Etrading and others have also filed CFTC SEF applications or launched new platforms as the new rules have come into force this year.
Pending approval, Integral will be offering a regulatory-compliant FX trading platform. This will include all necessary connections to liquidity providers, clearing houses, and so forth. Integral’s cloud services delivery mechanism requires no upfront investments, but will of course have on-going fees. Customers can benefit from the flexible, scalable and easy start-up nature of the pay-as-you-go business model though if they are not intending to launch their own offering.
Integral’s SEF will support request for quote (RFQ) and an integrated order book. Customers will enjoy a seamless transition between regulated and non-regulated instruments. For liquidity providers, Integral says it will offer easy access to a large institutional market, while taking care of all the integration issues. For buy-side firms, Integral provides on-boarding and workflow solutions.
“Over two decades, Integral has solved some of the toughest technology problems in capital markets for the benefit of our clients. As a natural extension of our OTC FX platform FX Grid, we took on the challenge of helping our customers, partners, and liquidity providers navigate the new regulatory landscape,” explains Harpal Sandhu, chief executive officer (CEO) of Integral Development Corp. “We have created a SEF that preserves what is best about OTC markets - relationships, choice, resiliency, and bespoke business models, thereby minimising any potential disruption to our customers’ foreign exchange trading businesses.”