Under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, swap execution facilities are a new form of regulated market for trading and processing swaps.

The draft establishes core principles that reflect the statutory definition and requirements of SEFs. It also looks at core principles which allow SEFs to only allow trading in swaps which the CFTC has determined not to be readily susceptible to manipulation.

The WMBAA said SEFs must monitor trading to prevent manipulation, price distortion and disruptions in the settlement process. They will publish information on settlement prices, transaction price range and volume, and other transaction data, in a timely way.