The Woodlands, TX, April 4, 2023 —AEGIS Swap Execution Facility (“AEGIS SEF”) today provided multiple updates on its financial counterparty (“Dealer”) participation and first quarter 2023 trading activity, as well as insight into its formation and registration.
AEGIS SEF now has 18 Dealers and nearly 330 commercial end users (“Participants”) executing hedging transactions. Each Dealer and Participant has signed definitive documentation to enable the execution of hedging transactions on AEGIS SEF.
“As transaction volume grows, we are seeing an increase in Dealer interest to execute transactions on our hedging marketplace,” said Justin McCrann, President of AEGIS SEF. “To meet demand for an efficient, compliant solution that can facilitate swaps between Dealers and Participants, we will begin executing other underlying products in the near future, including bilateral interest rate swaps.”
Trades executed on AEGIS SEF increased 60% month-over-month and 224% quarter-over-quarter. March saw monthly highs for trades executed, products traded and number of trading entities. The month also recorded daily and weekly volume highs as Participants sought certainty in volatile energy and metals markets.
In March, AEGIS SEF also shared details on the journey that led to its creation and registration as a swap execution facility (SEF). You can read more at https://aegis-hedging.com/sef.
AEGIS SEF also described the valuable role of hedging marketplaces to conduct real-time price discovery. You can read more at: https://aegis-hedging.com/the-value-of-marketplaces-in-hedging.
“Creating and registering as a SEF was never on our radar. Our desire to create a hedging marketplace opened a larger discussion on the regulatory requirements for Commodity Trading Advisors (sometimes referred to as hedge advisors). We hope sharing what we’ve learned will prove insightful for others who are required to travel the same path,” said Andrew Furman, Chief Compliance Officer of AEGIS SEF.
AEGIS SEF is the first Swap Execution Facility designed and built for Commodity Trading Advisor (CTA) Broker Firms to assist their clients with permitted hedge transactions in compliance with Commodity Futures Trading Commission and Dodd-Frank regulations.
For more information on AEGIS SEF or if you are interested in executing hedges on AEGIS SEF, please visit https://www.aegis-hedging.com/swap-execution-facility.
About AEGIS SEF
AEGIS SEF (U.S.) 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 and other instruments. AEGIS SEF offers a venue for trading in uncleared bilateral OTC swaps through a central limit order book (CLOB), request for quote (RFQ) system, and Offline Execution Functionality (OEF). For more information, please go to https://aegis-hedging.com/swap-execution-facility.
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 a sixth consecutive year. To learn more, visit AEGIS’ website at www.aegis-hedging.com.